As online bank fraud doubles, data security and privacy cited as biggest challenges

 Financial services companies are increasing their use of  Big Data initiatives to combat fraud according to a recent study conducted by Forrester Consulting on behalf of Xerox.

 During the next 12 months, nearly half (48%) of IT and business decision-makers surveyed in the financial sector said they will analyse historical customer data to identify and address potential fraudulent behaviour.

 In keeping with this, data security and privacy are cited as the number one challenge for financial services firms (44%) over the next 12-24 months. With the new General Data Protection Regulation (GDPR) set to come into effect by 2017, data privacy concerns likely will become only more stringent for firms going forward.

 Craig Saunders, director, Analytics Resource Center, Xerox Consulting and Analytics Services, said: “Detecting and communicating fraud is a huge challenge and a very sensitive one when customer financial data is at stake. More firms are realising the need to invest in technical infrastructures, in such a way that allows them to explore unique customer information, identifying patterns and quickly noticing changes to this. It’s encouraging to see this type of work remains a priority for the coming years.”