Though applying cutting edge technologies are on unprecedented rise in banking industry, security issues are cropping up more and more. Banks are becoming vulnerable to increased frauds and cyber-attacks.  This can negatively hamper the image of the bank in the minds of its customers.

To counteract this, banks have developed various analytics tools. But, they are rule based that depend on arbitrary thresholds to trigger alerts for potential frauds. The flip side here is that it may generate false positives. These can cause deep frustrations among honest customers who are falsely blocked for fraud or are constantly asked to undergo strict security procedures.

 A new type of analytics tool has been developed to solve this problem. The new tool is called Adaptive Behavioral Analytics. It produces an accurate result that reduces false positives. Unlike rule based analytics, Adaptive Behavioral Analytics combine customer information to create a behavioral profile at an individual level. This gives a clear picture about the customer and generates an alert if there is any deviation from typical behavior spotted in real time. Interested to know more?

Read at http://www.bobsguide.com/guide/news/2014/May/16/and-now-for-some-good-banking-news.html  for more details on how this new Analytics tool is helping banks to detect and fight fraud.