The State of Financial Crime in 2022 and What That Means For Your Business
In the State of Financial Crime 2022 report, Comply Advantage provides a look into the top concerns of C-suite and compliance decision-makers across North America, Europe and Asia-Pacific. Comply Advantage surveyed 800 respondents from enterprise banking, investments, cryptocurrency, insurance organizations and fintech companies to identify insights that will shape the industry this year. Eighty percent of firms included in Comply Advantage’s report said they filed more suspicious activity reports (SARs) in 2021 than the previous year – up 10 percentage points from the 2020 report.
As financial crimes rise, the report found that issues pertaining to COVID-19, supply chain disruptions, fraud and cybercrime, and cryptocurrencies and NFTs are the major pain points posing security threats. A common explanation is the accelerating pace of data creation and the sheer volume of data that exists today. Another contributing factor is remote work. Data now resides on peoples’ mobile devices and cloud networks an organization’s IT and security teams may not even be aware of. This creates an ideal situation for bad actors to breach networks. As more data is created, and companies’ infrastructures are expanding to accommodate remote work worldwide, enterprises are more vulnerable to bad actors interfering during data collaboration.
IDC predicts that by 2025, 463ZB of data will be created every day. Our past blogs have delved extensively into how the financial services industry greatly benefits from innovation that is only possible via analysis of large amounts of real, sensitive data. So, how can banking and fintech companies capitalize on and realize this benefit amid the heightened crime risks?
Privacy-enhancing computation (PEC) solves a broad range of data challenges, especially in financial services and healthcare. TripleBlind’s work with partners like Accenture has mathematically proven that PEC allows financial institutions to collaborate and innovate without giving up proprietary data.
Here are four examples of how PEC benefits the financial sector as financial crime rates rise:
- Using aggregated customer data from credit card companies and banks, including point-of-sale, customer transaction, geolocation and online retail activity data, financial institutions can more easily and quickly identify fraudulent activity.
- Without the risk of misuse or redistribution of their IP during collaboration, credit bureaus can develop better algorithms for bureau management using one-way encryption.
- Using data from large retail banks and other financial institutions with customers-in-common, financial institutions will better know their customers and be able to accurately identify money laundering faster.
- Without the need for human intervention while processing sensitive data from financial institutions, alternative data providers can provide better insights to investment firms and hedge funds while reducing risk or liability for all parties involved.
TripleBlind’s innovations build on well understood principles of data protection, such as federated learning and multi-party compute, and radically improve the practical use of PEC by adding true scalability and faster processing. TripleBlind’s software-only solution is delivered via a simple API with support for all data and algorithm types.
To learn more about how privacy-enhancing computation can benefit your business and increase collaboration opportunities, please contact us today to schedule a personalized demo of our innovative technology.