Near field communication (NFC)1 is here to stay, according to new analysis by Frost & Sullivan, which states that NFC-enabled mobile phones will reach 53% of the overall mobile phone market, or about 863 million units, by the year 2015, as well will be the chosen method for mobile payments. To me, this is somewhat disconcerting because 2015 is not that far away, and consumers already use NFC payment devices. I wonder how much training is going on around investigating money movement within the NFC space?
Historically, many existing fraud solutions and systems have been developed with a siloed view, on traditional (non-emerging) platforms, that have limited the analyst’s ability to proactively prevent and mitigate the fraud, let alone follow the money trail. With prevention being the ultimate goal, most analysts and investigators will tell you, that when funds are in flight, the percentage of recovery is greatly diminished, as the minutes and hours pass. So does the movement to the NFC space hamper the analyst’s ability to quickly detect, mitigate and proactively follow the money?
Analysts need to be equipped with the tools needed to reach over and between products and channels – allowing them to be more proactive and thereby more effective in their fraud loss reduction efforts. This ‘layered security’ approach needs to not only be a philosophy, but a reality and active part of the fraud solution. Fraud detection and management systems need to not only enable the analyst’s and investigators to perform their job better, but they should be leveraged to ensure their case management system is not used solely for the purpose of being a dormant repository of information.
With all the new technology available today that has enabled the consumer to ‘bank on demand’, fraud prevention is even more critical now than ever. Are you prepared for what’s around the corner? Find out by asking yourself these questions:
• Do you have the proper tools and resources to aggressively attack the fraud in the new and emerging bank products and channels?
• Is your fraud solution provider partnering with you to strengthen your prevention strategies?
• Are you leveraging one of the strongest weapons in your toolbox against fraud, your customer?
1
NFC is a way for two devices to communicate small amounts of data when the devices are placed within a short distance of each other, usually about four inches. NFC technology is being used in today’s smartphones and allows a consumer to use their mobile phone as a payment method by simply swiping the phone close to an NFC reader.