The digital revolution has been a double-edged sword. While it has fuelled innovation and opened new avenues for growth, it has also unleashed a relentless wave of fraud.
From identity theft to account takeover, the tactics employed by fraudsters are becoming increasingly sophisticated. In this ever-evolving landscape, traditional fraud detection methods are struggling to keep pace.
While facing financial pressures due to various factors, the telecommunications industry is particularly vulnerable to fraud, with estimates suggesting annual losses of $38 billion. At the same time, financial institutions brace for a projected surge in Consumer and business scams, reaching a staggering $40 billion by 2027. To effectively combat these threats, both industries require the most recent and comprehensive customer data for accurate risk assessments.
A new paradigm: Collaboration is key
This is where Cognizant steps in. We believe the answer lies not in isolated defence strategies, but in a groundbreaking collaboration between telcos and financial institutions. This innovative approach leverages the unique data sets each sector possesses and harnesses the power of cutting-edge technology to create a proactive shield against fraud.
AI at the heart of the defence
At the core of this vision lies Artificial Intelligence (AI). We envision deploying adaptable AI agents that act as intelligent sentries. These AI guardians will continuously learn, analyse patterns, and predict fraudulent activity in real-time, effectively thwarting attacks before they even occur.
Unlocking the power of Telco data
Telcos possess a treasure trove of customer data – call forwarding activity, SIM card swaps, length of service, and location data – that can be invaluable in building a current picture of an individual's financial profile. However, privacy remains paramount. With customer consent at the forefront, we can unlock the power of anonymised or privacy-preserving Telco data to benefit financial institutions while adhering to the highest ethical and regulatory standards.
Breaking down silos: Collaboration for mutual benefit
This vision hinges on secure, collaborative data sharing. We propose fostering a secure method that allows telcos to share anonymized data with financial institutions. This not only empowers financial institutions with superior risk assessment capabilities but also opens up a new revenue stream for telcos, allowing them to ethically monetize their data assets.
A future of proactive protection
At TM Forum we are members of a catalyst project which is more than just a solution; it's a call to action. We envision a future where telcos and financial institutions join forces, leveraging AI-powered defences, cross-industry collaboration, and secure data-sharing to create a powerful, proactive shield against fraud. This collaborative approach will not only benefit individual institutions but also create a more secure and trustworthy digital ecosystem for everyone. Click here to find out more.
