The firm Carefull provides services oriented to older adults, related to financial security, for them, their families and their financial advisors. Its main services are called Carefull Guard, Carefull ID and Carefull Vault.
For example, the firm provides fraud tracking services. Fraud tracking is at the core of a modern fraud prevention strategy. Continuous fraud monitoring is the process of constantly monitoring all actions on a bank account, not just the initial login and subsequent financial transactions, such as payments and fund transfers. Continuous fraud monitoring analyzes all actions and events, whether monetary or non-monetary. This includes things like changes to an account owner’s profile, adding a payee, and device registrations.
By monitoring suspicious activity, an anti-fraud system must continually analyze large amounts of data, events, and their contexts, to detect anomalies in user behavior patterns. This approach allows the firm to respond in real time to the risk of a threat and stop a fraud attack. Continuous fraud monitoring examines and analyzes data related to online and mobile banking sessions, devices, IP addresses, behavior and all user events, as they occur in real time, to determine the risk level.
Regarding how fraud monitoring benefits the customer experience, customers benefit from an easier and more convenient experience with their financial institutions because online fraud detection takes place in the background. It does not interrupt the user experience unless it is necessary. From the customer’s perspective, transactions should be as seamless as possible. Customers would prefer not to be bothered with authentication methods for low-risk transactions; however, the appropriate level of authentication will be introduced, if necessary, to protect the user’s account. This seamless, frictionless background experience helps build customer loyalty and trust.
Once continuous fraud monitoring detects possible fraud indicators, the security of authentication will increase, rather than reject or hold a financial transaction for manual review by a fraud analyst. For example, if a transaction is assessed as suspicious, due to unusual timing, user location, or a significantly higher dollar amount than usual, the risk system will trigger an enhanced authentication challenge. The authentication method will match the risk level of the transaction.
Continuous fraud monitoring constantly assesses risk on a case-by-case basis and works in the background so as not to interrupt the customer experience unless necessary. When unusual or suspicious behavior is detected, the fraud system initiates an action, which could be “Decline”, “Block” or “Accept”. Users are only affected when the decision engine determines that the level of fraud risk justifies it.
The firm´s services are also really useful for financial planners and advisors, who work closely to banks. Transaction monitoring is one of the best tools banks have to comply with anti-fraud regulations. Anti-money laundering and terrorist financing are strictly regulated processes, and banks are under rigorous scrutiny by government agencies. To demonstrate their cooperation in preventing financial crimes, they must monitor the volume and frequency of customer transactions, the identities of the receivers and senders, the geographic origin of inbound and outbound transactions, and much more.
Monitoring the prevention of money laundering and terrorist financing means monitoring the behavior of a client’s transactional movements, evaluating whether the activity he carries out is expected or if there was any significant change in his profile. The firm´s tools to monitor money laundering generates alerts taking into account the different financial products or services: electronic transfers, checks, payment orders, loans, insurance, financing, etc.
The firm provides computer systems to monitor transactions and detect those that deviate from a specific pattern of behavior. The most common parameter in this type of system is the comparison between pre-established limits and bank movements. When any parameter inconsistency is found, the system sends an alert to risk managers so that they analyze the case and so that the suspicious activity is reported to the competent authorities.
Among the main criteria used by computer systems, we can find differences between a client´s income and patrimony and the operations that he usually carries out; an increase in the number of operations carried out by the client within a given period; hiring new products and services that do not match the customer’s profile; frequent changes in customer registration data; transactions above certain values; exceeding the limits granted; recurrence of alerts for atypical movements; complaints registered in the internal system; large volume of transfers to third parties or lots of small value transactions.