Spurred on by the growth in demand for financial products and the growing complexity of the technology involved, the demand grows for robust fraud risk management frameworks in financial institutes across the Asia Pacific region. In Hong Kong and Macau, financial institutes face the same challenge of finding a balance between customer convenience and incorporating thorough risk assessment processes, one of the mainstays for effective fraud risk management capacity and increasing resilience against fraud.

Global digital specialist GBG, in partnership with AsiaRisk, discuss how financial institutes can continue to mitigate fraud through modern solutions while adjusting to increasingly rigorous regulatory requirements in Hong Kong and Macau.

Key insights from experts

• Regulators have been focusing on scams against consumers beyond just the banking industry, with telcos and social media platforms also expected to address fraud.
• Scams, card-not-present fraud, and first and second first party fraud are estimated to be the key challenges faced in 2023.
• More effective real-time application verification can be achieved by using third-party enriched data like email, phone number, age, social footprint, payroll number verification and etc.
• Classic fraud (e.g. fake cheques) should not be overlooked even as new methods of fraud continue to emerge.
• FIs to adapt alternative data and technology to enhanced customer onboarding journey experience.
• With more interconnected data available, FIs could leverage machine learning model to augment new orchestration protection rules.

Expert Panel Highlights