Financial crime

Fraud continues to be a constant theme in headlines, causing significant financial and reputational losses to financial institutions.

High-impact data breaches have plagued credit-reporting bureaus, government agencies and private companies, raising concerns around not only weaknesses in cybersecurity controls, but also fraudulent activities committed using stolen personal data. Meanwhile, fraud schemes such as account takeovers and internal fraud have continued to grow in the past year, as confirmed by PwC’s recently released 2018 Global Economic Crime and Fraud Survey.

In response, financial institutions will need to enhance their efforts regarding financial-crime prevention and detection methods in order to match the increasing threat landscape. Today, those threats are increasingly technology-enabled, and we have seen traditional crime and cybercrime converge. From a more proactive and regulatory-driven perspective, financial institutions also need to constantly improve their prevention and detection approaches to continuously monitoring transactions and client relationships, with regard to the increasing focus on the risk-based approach. Not least, there remains a lot to do regarding transaction monitoring approaches, since the technology is there but its efficient use is often limited by data quality and scenario management.

With the emerging threats, industry developments and corresponding regulatory responses, financial institutions will need to adjust their governance and controls strategies to keep up. In particular, as fraud and cybersecurity become increasingly interconnected, financial institutions can no longer afford to approach these threats in silos, as can already be seen in international trends. Accordingly, firms will need to ensure that anti-fraud and cyber teams work together to gain a clearer view of the threat landscape, proactively detect threats, and better streamline investigations.

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Contact us

Michael Weis

Partner, Forensic Services and Financial Crime Leader, PwC Luxembourg

Tel: +352 49 48 48 4153

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