Monetary and Banking Research Institute
Date:2/24/2020 9:28:07 AM   |   Code : 334696   |   View: 234

The Quality of Iran's Fraud Detection System is World-Class

Head of Fraud Management Systems Group of Informatics Services Corporation said: The quality of Iran's fraud detection system is at the international standards.

According to the Public Relations of the Monetary and Banking Research Institute, Jalaleddin Nasiri spoke to the press of the 9th Annual Conference on Electronic Banking and Payment Systems, and in response to the question of how much fraud detection and management systems are used in the banking system? What are the benefits of using such systems? Said: "Because the number and variety of bank transactions are growing, traditional methods for detecting and preventing fraud are very limited," he said. The challenges posed has caused the surveillance systems are moving towards the use of AI and machine learning. The use of such systems will make surveillance intelligent and thereby increase the security of banking systems. The extent to which such systems have been applied is near the technical-process evolutionary maturity in Iran but has not yet reached the strength it desires. The benefits of using smart fraud detection systems include high detection speeds, prevention of abnormal transactions online, behavior change analysis, and relative safety of customers and banks from potential losses.

In response to the question, how well is the system of fraud management and detection system in Iran compared to other leading countries in the world? Continued: In the last few years, proper steps have been taken to update the technical-process aspects of fraud detection and management systems, but since business models in Iran are slightly different from the rest of the world, for example, in Iran, more than 90% of cards are debit cards and the rest are credit cards, but the opposite is true in the world. That is why we have not been into the problem that much. But Iran's speed in the last few years has been very good at equipping fraud detection systems with the need felt.

"But if we want to look at how far Iran is from the world, we are almost certainly not far off," he said. Our systems in Iran are personalized, like their business, for example, in Paya, clearing interbank and SHAPARAK transactions have been customized, and the fonts we have are sometimes different from those in the world. For instance, we have a “Sepa” standard in Paya, but not all of these standards are met in the bank branches. That is why we usually do not fully utilize the models used around the world and have to adapt to our systems because businesses in Iran are different from businesses in the world and all of this goes hand in hand. They make us develop systems for our fraud detection in Iran and cannot buy foreign systems.

In response to the question: What is the security of the system for managing and detecting fraud? Continued: It is a fact that no fraud detection system can claim that all fraudulent transactions can be detected and prevented. Besides, the number of false alarms in fraud detection systems is one of the parameters of system performance evaluation. Criminal behaviors are also becoming increasingly complex. On the other hand, behavioral profiles and the use of artificial intelligence systems give good power to fraud detection systems so that they can correctly detect any behavioral changes.

Nasiri, on what level are we in the digital surveillance field? Said: "The situation in digital surveillance is better." he said. There are good practices in banks that we can divide them into two. In traditional systems, we did not have proper identity items. As a matter of fact, with the "NAHAB" system, all real, legal, and foreign customers can now have the "SHAHAB" code, and the customer identity is appropriately accessible. Offline financial and identity data integration systems have made it possible for supervisory and governance bodies to operate well.

In response to the question of “how do you assess the prospect of digital surveillance in Iran?” added: "We see both technical and process challenges in the digital surveillance landscape". There is a technical dimension and a process dimension. On the technical side, we usually see a better situation. In digital surveillance, we need to identify the customer from different angles to know the customer well. Up to this point, the technical dimension is bold. After this step, we should be able to process and use these terms based on the knowledge gained. It requires legislative and process discussions. In this situation, we see a little weakness. Suppose the system found a fraudulent transaction. Next, we want to prevent this suspicious transaction. Is this legally permissible? We usually have weaknesses in the second stage. To solve this problem, all organizations involved must enter the field to achieve a complete chain and to achieve more stringent monitoring.

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