Ben Rowhani

Our Chief Risk Office Brian Boates breaks down AI's role in fighting financial crime in the PYMNTS' Headlines That Will Shape Close of 2025 Report. See how we're using real-time detection and more to protect customers and expand what's possible. Full report here: https://lnkd.in/eyPPa7fb

79

Unified Intelligence. Unmatched Protection. Today, NICE Actimize unveils the Actimize Insights Network, delivering real-time, cross-institutional visibility into counterparty risk before money moves. As APP scams and BEC attacks surge, traditional fraud controls fall short because they can't see beyond institutional walls. The Actimize Insights Network changes that with connected intelligence at scale. Learn more >> https://bit.ly/45AkLKp #FraudPrevention #ActimizeInsightsNetwork #FinancialCrime #APPFraud #BEC #RealTimeIntelligence

29

3 Comments

Your AML program passed its last audit. So did every bank that just got hit with billions in penalties. The gap between audits is where problems grow. Banks clinging to traditional compliance tools are walking straight into this financial disaster because they're stuck with static, periodic audits that focus on every function in isolation. Digital twins eliminate that blind period. They monitor your entire AML operation continuously, catching issues as they develop. Increasingly, adopters report catching compliance gaps weeks before they would have surfaced in standard audits. Banks using this approach are finding compliance gaps their traditional systems missed completely. See what they're discovering in our latest publication: https://hubs.ly/Q03wsg960

19

While chief risk officers focus on modeling credit losses, mitigating operational risks and ensuring regulatory compliance, a complex and growing system of fraud threatens customer portfolios, institutional reputations and financial stability – often without triggering existing risk monitoring systems. https://lnkd.in/e3G_NKQ2 #financialrisk #riskmanagement #AML #fraud

28

Announcing our most powerful fraud model yet… Meet Plaid Protect—a new fraud intelligence system that starts before signup, not after. It doesn’t just flag bad inputs. It spots the network fingerprints of fraud: reused devices, churn-and-burn bank accounts, and identity details that keep popping up in the wrong places. Built on: 🔹 ML-powered Trust Index with thousands of insights and attributes 🔹 Behavioral patterns from a billion devices and account linkings 🔹 Built-in rules engine to turn insight into defense—instantly

124

1 Comment

What if KYC wasn’t periodic… but perpetual? It’s time to move beyond static risk reviews and embrace a dynamic standard. At Encompass, we’re helping forward-thinking banks test and transition to perpetual KYC (pKYC), and the best place to start is in a safe, controlled environment..... meet our pKYC Sandbox. A risk-free, low-lift way to explore how continuous monitoring, smart automation, and data orchestration can transform your approach to compliance. In our latest blog, we break down: - What pKYC really means - The role of the sandbox in testing transformation - Why now is the right time to act If you're exploring smarter ways to manage KYC risk and boost operational efficiency, this is essential reading. https://bit.ly/460VEkT #pKYC #ComplianceTransformation #RegTech #FinancialCrime #Sandbox

13

1 Comment

In a recent Future of Fintech webinar, Kim Grey, CFE shared why synthetic identity fraud has seen a sharp increase year over year and how fraudsters are exploiting credit gaps tied to underused or unmonitored identities. Watch this clip for a quick primer, and visit https://lnkd.in/gBvUM5Ey to access the full webinar replay for insight into how fintechs can better anticipate and mitigate this threat. https://bit.ly/43wsoQ8 #Fintech #RiskManagement #FraudPrevention #CroweInsights #EmbraceVolatility

33

With Nacha’s new fraud monitoring rules going into effect in March, I’ve been having a lot of convos with my team about how this may impact banks. One thing that I haven’t seen anyone talk about is how this is going to have downstream implications for compliance teams. As FIs start implementing risk-based monitoring for inbound ACH credits, they may start to uncover a bunch of hidden risks they didn’t know about. Which means analyst teams, who are already under water, are going to get hit with a lot more alerts to review in their queues. This is the exact type of problem that Agentic AI is made for. They can: - Take the first pass at reviewing these alerts - Clear out the obvious false positives - Recommend whether to resolve or escalate - Provide a full summary with its reasoning for a human reviewer Many of our customers are using our AI agents for this exact use case, quickly clearing out 95% of their false positives so analysts can spend more time on high priority reviews. And with the agent doing the heavy lifting on the investigations and summaries, an analyst can spend 20 minutes to get through a queue that used to take days. This is just one example of how we’re partnering with customers to get ahead of upcoming changes like these Nacha requirements. If you want to talk through any issues you’re facing, DM me. Also check our Nacha blog for more tips we’ve been thinking through: https://lnkd.in/eKzQGdUa

31

1 Comment

📰 Check out this deep dive from The Financial Brand on our 2025 State of Fraud Report: "The 2025 State of Fraud Report reveals a critical inflection point in the financial industry’s battle against fraud, with 60% of institutions reporting increased fraud attacks affecting both consumer and business accounts. The landscape is dominated by sophisticated fraud rings, while digital channels (online or mobile banking) remain the primary vulnerability." https://lnkd.in/gFZ36jcB

15

2 Comments

**SME Leaders: Your Transaction Monitoring is Broken. Here's How AI Can Fix It.** Your fraud team is drowning in false alerts while real threats slip through. Traditional transaction monitoring systems flag thousands of transactions daily, forcing your compliance team to chase ghosts while sophisticated criminals exploit the gaps. JPMorgan just proved this doesn't have to be your reality. According to a Reuters report from May 2025, the bank achieved nearly $1.5 billion in cost savings through AI-driven improvements in fraud prevention. More importantly for SME leaders, AI can detect fraud 300 times faster than traditional systems. Here's what caught my attention. JPMorgan launched "NeuroShield," an advanced AI-powered fraud detection system that demonstrated a 40% reduction in fraudulent transactions during pilot testing. The system employs behavioral biometrics and real-time anomaly detection. But here's the real game changer for your business. In the realm of AML, the AI system achieved a remarkable 95% reduction in false positives. Think about what that means for your team. Instead of investigating 1,000 alerts to find 10 real threats, you're investigating 50 alerts to find the same 10 threats. Your analysts can finally focus on actual investigations instead of data entry. The secret isn't just detecting more fraud. It's about behavioral profiling. Leveraging machine learning and AI-driven analysis, NeuroShield monitors transaction patterns and user behavior to detect and prevent unauthorized activities. By analyzing keystroke dynamics, mouse movements, and login habits, the system identifies suspicious behavior before a fraudulent transaction is completed. For SMEs handling $5M-$50M in revenue, this technology isn't just about compliance anymore. It's about competitive advantage. Your customers get seamless transactions while criminals hit a wall. Your compliance team becomes a strategic asset instead of a cost center. The ROI is immediate and measurable. Reduced investigation time, fewer false positives, and catching sophisticated schemes that traditional systems miss entirely. Plus, regulators see you're using cutting-edge technology to meet your obligations. Your competition is still playing defense with rules-based systems from the last decade. You can be playing offense with AI that adapts to new threats in real-time. The question isn't whether AI will transform transaction monitoring. JPMorgan already proved it works. The question is whether you'll implement it before your competitors do. Link: https://lnkd.in/evQ9sBRT #AIinFinance #TransactionMonitoring #FinTech #AML #FraudPrevention #ComplianceTech #AIAdoption #FinancialCompliance #BusinessAI #RiskManagement

9

Financial Crimes Enforcement Network, US Treasury released a timely alert today for FIs and bulk cash smuggling and detection of TCOs. The alert highlights several typologies, but for me, this is where non-public direct feedback from LE would be the most helpful. The typologies are a little dated (with some footnotes referencing 2018 National ML RAs). The intent behind this is great - love that FinCEN is trying to give operational takeaways for FIs. BUT I hope that someday (soon) FinCEN will be giving direct red flags via secure methods that are more operational and more timely. Meaning, I know there are other ways that TCOs move and store money and I know that FinCEN knows there are other ways this occurs. But we don't want to "telegraph our pass" to illicit actors by publishing for public consumption. Side note - It is puzzling that the same administration would be entertaining a much higher cash reporting thresholds while at the same time emphasizing the cash involved in the survival of TCOs. For FIs, the biggest takeaways are below: 1) Armored car services used by your customers - must have full vetting by not just your customer, but also your FI if you are accepting their deposits (cash) or ACH/wire from armored car service or related business. 2) Stored value, money orders, crypto, wires and funnel accounts did not get any play other than a footnote on pg. 1... meaning, if you were a TCO-related business reading this public order, you would avoid cash. So, FIs should also not forget about the non-cash ways in which money can be stored/moved. 3) As I noted in the AML Partnership Forum a few weeks ago, operationalizing the detection/reporting of FTOs & SDGTs (cartels) starts to touch on 4 of the 8 National Priorities - TCOs, DTOs, Human Trafficking/ Smuggling, and Terrorist Financing. FinCEN also noted that this particular advisory touches on 2 of the 8 Priorities. 4) While Mexico indicators are referenced in the various red flags, we can't forget that other countries are involved in moving money for the named cartels... not just MX. In addition, our offshore onshore states that allow for anonymous incorporation, can and will give a "domestic" feel to foreign owned businesses. Ah, the CTA... what could've been! R.I.P. 5) My 2013 Article titled "Structuring: You're Probably Not Getting it Right" feels vindicated by this - "U.S.-based financial institutions should not conflate the presentation of a CMIR as an indication that the source of the funds is legitimate...the obligation... is not a justification of its origins." Meaning, just because someone is willing to have a CTR or CMIR filed does not mean they are legit. 6) The Red Flags on pgs. 6-7 are tough to operationalize because it is heavily focused on MX, cash, and armored car services. There is a brief mention of the northern US border, but fixation on the southern border. I guess for me, if you were thinking like a criminal... where would you go? #ifollowdirtymoney #AML

142

6 Comments

🤨 Compliance professionals know that risk scoring isn’t a simple process. Teams face ongoing challenges when it comes to assigning risk ratings that adjust to ever-changing factors. In our latest article, we dive into common obstacles teams face when implementing risk scoring for AML and how the ComplyAdvantage Mesh platform can help you tackle these challenges head-on. Ready to take your risk assessment to the next level? Read more: https://okt.to/NPL8MI

17

1 Comment

Families that scam together…stay together? 😬 Using our proprietary data, the Socure fraud experts have identified a Detroit-based family fraud operation that's rewriting the synthetic identity fraud playbook. Their 30+ synthetic identities have attempted to open 200+ financial accounts — and they're still active today. Yes, you read that right. We’ve uncovered a synthetic fraud operation led by members of a family in Detroit. Keep reading 👇 The family uses a sophisticated blended approach, mixing completely fabricated identities with cleverly manipulated versions of their real identities: ☠️ Their SSN strategy has evolved: starting with random-range numbers and now incorporating deceased SSNs (up from 8% in 2022 to nearly 15% in 2024). 📱 Their phone number tactics show clear adaptation cycles: shifting from carrier cell phones → VoIP numbers → prepaid phones → now back to 75% VoIP usage. 📍 IP address patterns suggest potential geographic expansion beyond Detroit into California and Texas. Despite this sophistication, this synthetic fraud family operation continues making a fundamental error: using their actual address for all applications. Moral of the story? Synthetic fraud operations like this may be tricky to catch, but you can always spot the bread crumb trail if you know where – and how – to look. In this video, Socure's expert fraud fighter, Deepanker Saxena, breaks down what these findings reveal about the future of synthetic fraud and how operations like these evade traditional fraud detection systems.

69

10 Comments

If there’s one lesson banks have learned from years of evolving regulation, it’s this: Third-party infrastructure without independent oversight creates risks that can’t be fixed after the fact. Forward-looking banks treat compliance-first practices as a core business strategy. They embed #compliance into the digital fabric of banking operations, not bolt it on on later. Especially for community banks, that proactive foundation makes it possible to innovate while staying prepared for regulatory volatility and operational stress. Get more insights on compliance-first strategies from Chief Compliance Officer and General Counsel Sheetal Parikh at the link in our comments.

14

1 Comment

Compliance doesn’t have to be slow⏱️ Banks face massive document backlogs and ever‑tightening regulations. First Line Software’s AI + LLM solution turns that chaos into clarity - reading, extracting, and validating documents in real time, slashing processing time by 70% while boosting accuracy to 99.5%. 👉 See how we did it and what it could mean for your bank. Read the full case study: https://lnkd.in/exQaXek6

14