Like stated in my first blog post, Insurance fraud is becoming an increasingly bigger problem in the Netherlands with an estimated 1 Billion Euro fraudulent claims annually. Organized crime, global terrorism, and new and ever-changing types of fraud – in addition to increased regulatory requirements – have led financial services organizations to pursue new techniques for preventing and detecting illegal activities.

In the digital age, the implications of fraud and financial crime perpetrated against financial services organizations and their customers have become ever more significant. The introduction of new products, however – and the use of new channels for distribution – create new vulnerabilities which must be addressed with new techniques. In recent years fraudsters have become increasingly sophisticated in the tools and methods they use to conduct fraud and are often able to “break” new prevention technologies within a few days of implementation. This is forcing financial services organizations to innovate continuously to stay one step ahead of the criminals. Still, companies are often at risk when they launch a new product or begin using a new channel; innovation can create the risk of attack as prevention measures may not be evolved enough to address such risks.

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