Financial Market: How ClearSale Supports the Battle Against Fraud Schemes

The financial sector is one of the most vulnerable to fraud attempts and attacks. ClearSale recently achieved a significant breakthrough by uncovering the source of a fraudulent scheme at a leading Latin American bank, marking a major step forward in combating fraud in account openings. Learn more!

Fraud Schemes Most Commonly Faced by Financial Institutions

Financial institutions are constantly exposed to a variety of fraud attempts that represent a significant threat to their customers’ security and the integrity of their operations. The main threats are described below:

• Phishing and social engineering: Scammers send fake emails or text messages posing as legitimate financial institutions for the purpose of obtaining confidential customer information, such as passwords, account numbers and credit card information.
• Credit card fraud: This type of fraud includes the use of stolen, cloned or counterfeit credit cards to make virtual purchases or cash withdrawals from automatic teller machines (ATMs). Criminals also use "skimming" devices in ATMs or payment terminals to capture card information.
• Loan fraud: This type of fraud can involve presenting false or misleading information when applying for loans, mortgages or credit lines. Scammers typically falsify financial or identification documents to gain improper access to funds.
• Identity theft: Scammers can steal personal information for use in opening bank accounts, applying for loans or engaging in financial transactions in the name of the victim.
• Wire transfer fraud: This scheme manipulates wire transfers by falsifying authorizations or altering the details of destination accounts to redirect funds to accounts controlled by the criminals.
• Insurance fraud: This normally includes presentation of false complaints, document forgery or manipulation of information to obtain improper gains.

Opening Fraudulent Bank Accounts

One of the major banks in Brazil and Latin America recently faced a significant challenge related to the opening of fake accounts. Scammers succeeded in involving branch managers in a scheme to create false accounts and conduct fraudulent transactions.

Thanks to its use of ClearSale’s Cyber Threat Intelligence, the financial institution was able to conduct a deeper investigation into the scammers’ modus operandi. Through open source analysis and interaction with the criminals, it was possible to identify the malicious actors behind the scams as well as the methods used to penetrate the system.

As a direct result of the Cyber Threat Intelligence intervention, all fraudulent accounts were identified and blocked, and the suspected criminals were detected and detained by the authorities. In addition, the institution was able to identify the vulnerabilities that were being exploited and implement preventive measures to avoid similar incidents in the future.

Threat Intelligence in the Battle Against Fraud

Cyber Threat Intelligence plays a fundamental role in combating fraud. Through the use of advanced artificial intelligence (AI), real-time data analysis and dedicated experts, the tool can identify suspicious patterns and behaviors, allowing financial institutions to act swiftly to mitigate risks.

There is no doubt that it’s crucial for the financial sector to protect its data and customers against increasingly sophisticated fraud. Reliance on Cyber Threat Intelligence can make institutions  better prepared, more secure and more credible.