It is proving to be not enough for corporate treasury and accounts payable departments to set-up a fraud-prevention framework with:
- Application security – protecting access to systems and data,
- Payment controls – standardizing how payments are initiated, approved, and transmitted to the bank(s)
- Payment screening based on external sanction lists and internal fraud detection systems.
The problem is that fraud is so dynamic that new and different types of fraud keep occurring, the corporate treasury and the Accounts Payable departments needs a dynamic backstop.
A final real-time check is needed to prevent all sorts of fraud combinations that were not caught by these three types of detection and prevention systems. This is where Kyriba’s ‘Real-time Payment Fraud Detection’ new module takesover.
Real-time Payment Fraud Detection scenarios
The new real-time fraud detection module detects fraud and non-compliant payment activity checking each payment against specified scenarios and flags non-compliant payments in real-time. The new fraud detection module enables users to set pre-defined detection rules (scenarios) to screen for suspicious payments requiring further attention, such as:
• Domestic transfer to a beneficiary’s bank account located in another country
• International payment to a country where there is no known supplier
• Multiple payments that, in combination, exceed a soft or hard payment limit
• Changes to a payment that was imported from an ERP
• First payment to a new (or newly updated) bank account
• Payments inconsistent with the amounts or dates of the payment history.
Currently there are some 10 scenarios that the new module carries out real-time checks against. More scenarios will be developed to answer user demands and as fraudsters develop new forms of attack.
Real-Time Alerts and Notifications
Users can customize the Payments Fraud Detection dashboard to display all suspicious payments and prioritize their resolution, based on KPIs such as detection rule, risk exposure, incident counts and a fraud detection scorecard, see below:
Source & Copyright©2017 -: Kyriba Inc
The system also enables users to specify the exact procedures that are followed on each alert and how they are investigated, e.g. How not to alert possible perpetrator(s).
Benefits and charges
Benefits of the new Real-time Payment Fraud Detection module include:
- the ability for users to add custom screening rules and scenarios to align with internal payment policies
- separation of duties to investigate and resolve detected payments – including silent alerts
- the picking up of frauds that have occurred earlier in the payment process, so enabling these errors to be corrected in the internal processes and systems at a later date.
Kyriba’s charging structure for the new Payments Fraud Detection module are in “align with their normal charges per module, number of users and payment volumes.”
CTMfile take: The real-time final checking of the payment immediately before it is made is so obviously needed, it is surprising it has not been developed before. The ability to develop new ’fraud prevention scenarios’ for each user’s requirements and new types of fraud is vital. This really could be the backstop in payment fraud prevention.
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