To that end, SEB turned to NICE Actimize, which has risk-monitoring software that monitors all trades in order to detect suspicious transactions, such as a large transaction in which the seller is also the buyer, one way to fool the market into thinking securities are rising in value. Actimize watches the general trading patterns of clients, triggering reports that may lead to internal investigations and eventually a report to outside authorities.
Just in the Swedish market alone a few cases each month will surface that require a close look, Jansson says. Watching for insider trading, market manipulation and other violations is necessary to protect the reputation of the business, he points out.
Some U.S.-based institutions have also started using Actimize to prevent fraud.
Last July, Douglas Twining, director of fraud services at KeyCorp in Ohio, said integrating the behavior analytic capabilities of Actimize into back-end systems should bolster ways to look at risk associated with transactions, such as wire transfers, to be able to sort out the riskiest transactions for a fraud analyst expert to review in order to call the client to make sure they're legitimate.
Banks have to keep improving their anti-fraud defenses, Twining says, because "we've all seen a change in the depth and breadth of what organized crime is doing."
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