In today's digital age, bank account security is paramount. Financial fraud methods are constantly emerging, posing a serious threat to people's financial security.
Finally, financial transactions face a severe fraud environment, and three key issues remain urgent. First, fraud risk monitoring requires richer basic data; second, fraud risk monitoring requires more precise modeling methods; and third, fraud risk monitoring requires more timely intervention measures.
Banks can prevent telecom fraud from taking the following approaches:
- Strengthen customer education
Banks should regularly conduct anti-fraud publicity campaigns, using brochures, posters, videos, and other means to educate customers about the types and dangers of telecom fraud, as well as preventative measures. Bank staff should also proactively remind and explain anti-fraud information to customers during transactions.
- Improve business processes
Strictly implement real-name account registration to ensure the authenticity of customer identity information. Banks should conduct rigorous identity verification at key stages such as account opening and transfers.
Implement real-time monitoring and early warning of abnormal transactions. Use big data analysis, model monitoring, and other methods to promptly detect and intercept suspicious transactions.
Establish a rapid response mechanism. Once telecom fraud is discovered, banks should immediately activate emergency response plans, assist customers in recovering losses, and report the case to public security authorities.
- Enhance Technical Prevention Capabilities
Strengthen network security to ensure the secure and stable operation of customer information systems and prevent hacker attacks and information leaks.
Introduce advanced risk assessment models to conduct credit ratings and risk assessments for customers, providing differentiated services for customers at different risk levels.
Utilize technologies such as artificial intelligence and big data to conduct in-depth mining and analysis of transaction data to improve the accuracy of identifying telecom fraud.
- Strengthen Cooperation with Public Security Authorities
Banks should establish a good communication and collaboration mechanism with local public security authorities to promptly share clues and information on telecom fraud and jointly combat telecom fraud.
External fraud refers to fraud committed by third parties outside the bank and is a significant category of operational risk for banks. By 2025, its main types include SMS fraud, phishing, credit card fraud, telephone fraud, counterfeit checks, counterfeit card fraud, direct defrauding of customer funds, and ATM card fraud, often carried out through ATMs, POS terminals, or online channels. This type of risk is highly detrimental and has been listed by the China Banking Regulatory Commission as one of the most serious risks in bank card operations. To address this risk, banks have established a three-pronged defense system: pre-emptive publicity and education, ongoing risk monitoring, and post-event police-bank collaboration. They are also leveraging technology to enhance their early warning capabilities.