Latest news with #DattuKompella
The Sun
7 days ago
- Business
- The Sun
Scams, mule accounts top threats to Apac banks
PETALING JAYA: A new industry poll by global analytics software leader Fico has found that scams and mule accounts have become the dominant threats facing banks across the Asia-Pacific (Apac). Seven in 10 (69%) senior banking executives identified these forms of criminal activity as their greatest concern, reflecting the continued rise of scams in which victims are tricked into sending money directly to criminals. Unlike traditional fraud, which typically involves unauthorised transactions that banks can detect and block, scams often bypass existing defenses because payments are authorised by the victim. Once the money is sent, criminals rely on mule accounts to quickly move funds across institutions and borders, making recovery extremely difficult. The findings echo a growing alarm across the financial ecosystem, as scam-related losses reach historic highs across the region. In 2024 alone, Singapore reported more than S$1.1 billion (RM3.6 billion) in scam losses, a 70% surge from the previous year. Thailand saw ฿60 billion (RM7.2 billion) in damages, while Malaysia's losses were estimated at a staggering RM54 billion, or nearly 3% of gross domestic product. Similar trends were reported in the Philippines and Indonesia, where scam-related activity now dominates cybercrime reports. In a statement yesterday, Fico, a company that is a pioneer in the use of predictive analytics and data science to improve operational decisions, said the poll found that more than half of banking leaders (52%) view social media platforms as the top external threat vector for scams, followed by messaging apps (35%). In a region with more than two billion social media users, platforms such as Facebook, TikTok, and Telegram have become key channels for targeting scam victims and recruiting money mules. It said that criminal syndicates use these platforms to impersonate officials, promote fake investments, or advertise bogus job opportunities. Many victims are lured into schemes that appear legitimate on the surface, while others are convinced to 'rent out' their accounts in exchange for quick cash, not realising they are enabling financial crimes. In Thailand, more than 200,000 mule accounts were shut down in a single year. Singapore has introduced legislation that criminalises the supply of mule accounts and gives banks and authorities powers to act in real-time. The poll also found banks face internal barriers to detecting and responding to scams. The most common issue cited was siloed data (46%), followed by a lack of connected insights across products and channels (28%), and limited real-time integration with third-party systems (13%). 'Scam activity is often fast, fluid, and fragmented,' said Fico managing director of Asia-Pacific Dattu Kompella. 'To respond effectively, banks need connected systems that provide a complete, realtime view of risk. Without breaking down internal silos and unifying insights across teams, many institutions will remain on the back foot.' The poll also explored bank leaders' views on reimbursing scam victims. Just 14% said banks should fully reimburse customers in all scam cases. Half said compensation should only apply when the bank is at fault, while 36% supported a shared responsibility model between banks and customers.
Time of India
30-04-2025
- Business
- Time of India
Half of APAC banks still take months to act in a fast world: Survey
A recent FICO poll reveals that many Asia-Pacific banks struggle to quickly adapt decision-making processes. This is despite leaders acknowledging its importance. The slow response is concerning given market volatility. Banks also lag in using simulation tools. However, some banks are testing strategies virtually. Many are reusing decision-making components across functions. Composability is seen as essential, but adoption is slow. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Nearly half of banks in the Asia-Pacific (APAC) region still take months to roll out new decision strategies despite facing fast-changing market conditions, a new poll by analytics software firm FICO has revealed. This slow response comes even as 63% of senior bank leaders have ranked the ability to update decision-making processes such as fraud detection rules or credit risk models, as a top disconnect is raising concern, given ongoing macroeconomic pressures and disruptions stemming from cross-border trade tensions and shifting tariff policies from the United States. These conditions, the report says, require banks to operate with greater flexibility and speed.'Market volatility and evolving trade dynamics require financial institutions to move quickly and decisively,' said Dattu Kompella, Managing Director in Asia for FICO. 'Banks that build agility into their operations will be better positioned to maintain stability, earn customer trust, and stay competitive.'FICO's survey also found that banks across APAC are lagging in adopting advanced testing tools. Only 27% of respondents reported frequent use of simulation technologies such as digital twins, which are virtual models used to test system behaviour under various scenarios. According to FICO, this limited use may reflect a broader lack of preparedness as banks contend with increasingly complex customer behaviour, regulatory requirements, and financial there are early signs of progress. Among the banks that do use simulation environments, roughly half of their credit and marketing strategies are tested virtually before being deployed. This suggests that a growing number of financial institutions are prioritising pre-launch testing to ensure accuracy and 55% of banks said they are now reusing decision-making components across different functions—from fraud detection to customer service. This approach points to a trend towards more integrated and efficient poll also examined banks' views on business composability, which refers to the ability to quickly reconfigure and scale operations in response to external changes. Over half of respondents (53%) said this capability is essential for staying responsive in uncertain market allows banks to create decision strategies from modular building blocks, such as data sets, predictive models, and business rules, often pulled from multiple departments. This structure encourages cross-functional teamwork and quicker its potential, many APAC banks are still in the early stages of adopting composable systems. The transition, FICO said, will require flexible digital infrastructure, including open APIs, low-code development tools, and architectures that support modular design.'Agility starts with breaking down silos—whether technical or organizational,' Kompella added. 'When data, tools, and teams are connected, banks can adapt faster to the needs of both their customers and the market.'The FICO poll was conducted during a customer event in Singapore in late 2024, with participation from over 30 senior executives and C-suite leaders representing banks across the APAC region.
Yahoo
27-03-2025
- Business
- Yahoo
FICO Survey: 1 in 4 Indonesian Consumers Report Losing Money to Scams via Real-Time Payments
Indonesian consumers want stronger protections against authorised push payment scams JAKARTA, Indonesia, March 27, 2025--(BUSINESS WIRE)--(NYSE: FICO) Highlights More than half (56%) of consumers in Indonesia identified having better fraud detection systems as the most important action banks can take to protect them from scams One in four (23%) Indonesian consumers reported losing money to scams via RTP The share of high-value scam losses exceeding Rp 70 million (USD$4,300) has risen to 8% in 2024 – up from 1% in 2023 A new survey by global analytics software leader FICO highlights the rising threat of scams within Indonesia's real-time payments (RTP) ecosystem. The '2024 Scams Impact Survey: Indonesia' found that 23% of consumers reported losing money to scams via RTP. In many cases, this involved paying for goods, services, or investments that were never delivered. While most Indonesians (93%) trust the security of RTP processes—significantly above the global average of 73% — the survey reveals a sharp rise in both the frequency and severity of scams in Indonesia, alongside alarming trends in financial losses. "Scam losses are on the rise in Indonesia, with 23% of consumers reporting they lost money in 2024—up from 19% in 2023," said Dattu Kompella, managing director in Asia for FICO. "Even more concerning is the sharp increase in high-value scam losses exceeding Rp 70 million (USD$4,300), which grew to 8% in 2024. These figures underscore the growing financial and emotional toll scams are taking on Indonesian households." More information: The findings emphasise the urgent need for proactive fraud detection and customer engagement, especially as RTP continues to gain traction in the country. 66% of Indonesians reported exposure to messages from scammers, and 57% said friends or family members had been scammed. RTP continues to gain strong momentum in Indonesia, with 99% of consumers having sent and 97% having received RTP, according to the survey. Looking ahead, 59% of Indonesians expect to increase their RTP usage in the next 12 months—well above the global average of 44%. "Real-time payments are now embedded in daily life for many Indonesians, and usage will only continue to grow," added Kompella. "But as adoption increases, so does the risk of scams exploiting the speed and irrevocability of RTP. Banks are in a prime position to lead the fight—by educating consumers, clearly communicating risks, and deploying advanced scam detection tools to safeguard trust in the RTP ecosystem." The survey also highlights that Indonesian consumers strongly believe banks should play an active role in preventing scams. In fact, 70% stated they would view their bank more positively if it intervened in real time to prevent a suspected scam payment. "A bank's ability to combat scams hinges on advanced technologies like AI-powered analytics, contextual decisioning and real-time customer engagement," concluded Kompella. "These tools enable targeted warnings and automated actions, such as step-up authentication and transaction suspensions, to enhance scam prevention and protect customers effectively." FICO's survey was conducted in 2024 by an independent research company. It surveyed 1,001 Indonesian adults, along with approximately 11,000 other consumers across 14 countries, to explore their experiences regarding RTP usage, scams, and their banks' scam prevention capabilities. About FICO FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency. Learn more at Join the conversation at & For FICO news and media resources, visit FICO is a registered trademark of Fair Isaac Corporation in the US and other countries. View source version on Contacts RICE Communications for FICOfico@ Saxon ShirleyFICO+65 9171 0965saxonshirley@
