Striking a Balance: How Mobile Money Professionals Are Tackling Transaction Monitoring
The mobile money industry is booming, but with increased transaction volumes comes a heightened risk of fraud and revenue leakage. To keep pace with evolving threats, providers need robust systems for identifying suspicious activity. We recently ran a LinkedIn poll asking Mobile Money professionals how they currently identify issues with transactions. The results provide valuable insights into current practices and highlight the need for a comprehensive approach.?
The Power of Rules: Still a Cornerstone of Fraud Management?
A significant majority (53%) of respondents rely on fraud management rules to flag potentially problematic transactions. This isn't surprising. Rule-based systems have long been a cornerstone of fraud prevention, offering a clear and transparent way to define suspicious patterns and trigger alerts. These rules can be tailored to specific fraud scenarios, such as:?
Threshold breaches: Flagging transactions that exceed predefined limits for value or frequency.?
Anti-Money Laundering (AML) detection: Identifying suspicious transaction patterns that are indicative of money laundering activities.?
Impersonation fraud: Detecting attempts to access accounts using stolen credentials.?
Agent fraud: Monitoring agent activity for suspicious behavior like unauthorized commissions or fictitious accounts.?
While rule-based systems are effective, they require careful configuration and ongoing maintenance. Rules must be regularly reviewed and updated to keep pace with evolving fraud tactics. This is where having a robust Rule Engine like the one offered in LATRO's Assure Fintech is crucial. It allows you to easily create, modify, and manage your fraud rules, ensuring they remain effective against emerging threats. Moreover, features like List Management enable you to maintain and update crucial reference data such as commission schemas and blacklists, which can be directly integrated into your fraud rules.?
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The Rise of AI and Machine Learning for anomaly detection
It's encouraging that 29% of respondents already leverage AI/ML for anomaly detection. This technology offers a powerful way to identify suspicious activity that might slip through the cracks of traditional rule-based systems. AI/ML algorithms can analyze vast datasets to identify subtle patterns and anomalies that could indicate fraud.?
However, AI/ML alone is not a silver bullet. It's most effective when used in conjunction with other methods, such as rule-based systems and human expertise. LATRO’s Assure Fintech combines AI/ML with other functionalities like the Rule Engine and Transaction Browser, allowing operators to leverage both rule-based alerts and AI-driven insights to effectively identify and investigate suspicious activities.?
Reconciliation: Closing the Loop on Revenue Assurance?
While fraud prevention often takes centre stage, revenue assurance is equally critical. 18% of respondents highlighted the importance of reconciliation rules in identifying transaction issues. These rules help ensure accurate billing, prevent revenue leakage, and maintain healthy financial relationships with partners.?
The Need for a Holistic Approach?
The poll results underscore the need for a multi-faceted approach to transaction monitoring. A robust system should combine the strengths of different methodologies, including:?
Clearly, the fight against fraud and revenue leakage in the mobile money space requires a multi-pronged approach. It's about balancing tried-and-true methods like rule-based systems and cutting-edge technologies like AI/ML. It's also about proactively preventing fraud while ensuring accurate reconciliation and revenue capture. Ultimately, it's about having the right tools and insights to navigate the complexities of the mobile money landscape and build a secure and profitable business.??
LATRO's Assure Fintech: Your All-in-One Solution?
LATRO's Assure Fintech platform offers exactly this kind of comprehensive approach. Our dedicated rule engine allows you to define and manage a wide range of rules, from simple thresholds to complex AML scenarios. We combine this with powerful re-rating reconciliation, analytics, and AI/ML capabilities to provide a truly holistic solution for your Mobile Money operations.?
Want to learn more about how Assure Fintech can empower your RAFM strategy? Contact us today for a demo and discover how we can help you build a more secure and profitable mobile money business.?Make sure to follow our LinkedIn to stay up to date with our Mobile Money news and tech updates!
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