The CEDD Company : Design of National Fraud Database
Salman, Mohammed (2021)
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202104225426
https://urn.fi/URN:NBN:fi:amk-202104225426
Tiivistelmä
Digitalisation has touched most aspects of the modern human life. The financial sector is one of the most effected by digitalisation with ever growing percentage of commercial transactions conducted online. This digitalisation exposes financial services to increasing fraud attacks. Meanwhile, customer data protection and privacy are other aspects that the financial sector must deal with. The goal of this study is to research the feasibility of leveraging crowdsourcing to implement a fraud database, helping banks with early and ongoing fraud detection and mitigation, hence reducing unrecoverable fraud losses.
The data collected for this study came from multiple sources including legal books, Finnish laws, and financial regulations. The data also included several interviews with professionals from the financial sector. Since the viability of the fraud database as a profitable company is one of the targets, investors were also consulted in this project.
The feasibility of a fraud database is a composite of two criteria, legal feasibility and technical feasibility. During the research of this project, it was found that the project is technically reasonable and that implementing a database for fraud cases is a straightforward task. The legal viability, in contrast, is hard to achieve with the financial sector being a heavily regulated field. It was found that a fraud database provider would need to be a licensed bank, but a bank license is legally complicated and out of the scope of this project.
The study showed that implementing a national fraud database is possible as a product within an anti-money laundering tools suite. While the fraud database has minimal technical requirements, the legal requirements will increase the operational costs. The study also showed that there is customer interest in a fraud database, with possible service fees covering for the legal operational costs of the database.
The data collected for this study came from multiple sources including legal books, Finnish laws, and financial regulations. The data also included several interviews with professionals from the financial sector. Since the viability of the fraud database as a profitable company is one of the targets, investors were also consulted in this project.
The feasibility of a fraud database is a composite of two criteria, legal feasibility and technical feasibility. During the research of this project, it was found that the project is technically reasonable and that implementing a database for fraud cases is a straightforward task. The legal viability, in contrast, is hard to achieve with the financial sector being a heavily regulated field. It was found that a fraud database provider would need to be a licensed bank, but a bank license is legally complicated and out of the scope of this project.
The study showed that implementing a national fraud database is possible as a product within an anti-money laundering tools suite. While the fraud database has minimal technical requirements, the legal requirements will increase the operational costs. The study also showed that there is customer interest in a fraud database, with possible service fees covering for the legal operational costs of the database.