As Alkami gears up for our annual conference, Alkami Co:lab, we wanted to introduce you to our innovative technology partners. Powered by our partner program, together we are empowering financial institutions with market-leading solutions that differentiate the online banking platform. At our event, banks and credit unions will have the opportunity to connect with these exhibitors in the Innovation Lab. To learn more about Co:lab, read the press release here.
The number one concern reported in Appgate’s most recent Faces of Fraud report is that fraud is evolving too quickly to stay ahead of it. At the same time, many financial institutions and fintech companies are realizing that the fraud protection layers in digital banking solutions too often result in threats being caught in silos, making it difficult to understand and efficiently combat complex scams.
Pay by Bank, Real-Time Payments (RTP), and Open Banking are finally gaining momentum in the U.S., and fraud targeting these new instant payment avenues is a significant concern. The average amount of loss per fraud incident is increasing, and the lines have become blurred over who is accountable when an account holder falls prey to a scam.
There used to be a clear line between fraud and scams. Banks and credit unions were on the hook to reimburse account holders for fraud, but not for funds lost in a scam where a user perpetrates the fraud, albeit unknowingly. This has changed in recent years as scams have become more sophisticated and difficult for users to detect. “Authorized user”, or Authorized Push Payment (APP) fraud, is now a top concern for financial institutions around the world.
One factor driving the shifting sentiment on the accountability of financial institutions and fintech companies for scam losses is the outsized impact they have on the elder community – in the U.S., elder fraud increased 11% year over year, and the loss amount is higher per account holder than for older individuals. With the population aging faster than the birth rate, this will continue to be a hot topic.
Most scams start with an end user clicking on a link in a phishing message. In 2024, Appgate’s Security Operations Center (SOC) team recorded a significant 86% increase in phishing incidents among its clientele, reflecting a disturbing trend in the financial sector. This surge coincides with an evolution in fraud tactics, as perpetrators leverage cutting-edge technologies such as generative artificial intelligence (AI) to enhance their social engineering strategies. Unlike in the past, when phishing attempts were often marred by obvious errors, AI now enables attackers to craft highly polished, personalized messages, making detection significantly harder and credential compromises more frequent.
Phishing is also no longer restricted to email messages, as fraudsters target the mobile channel by sending text messages, a technique known as SMS phishing or smishing. Vishing, or voice phishing, is also an emerging threat. In this case, generative AI-created deep fakes can make voice or video calls to unsuspecting individuals asking for a favor, usually the transfer of money. Not even aware they are being scammed, users move money naturally, without triggering typical behavioral biometrics-based fraud protection alerts.
Banks and credit unions need comprehensive risk intelligence that includes phishing insights, behavioral analysis, transaction anomalies, and device risk. They require real-time fraud detection to combat sophisticated scams while maintaining efficiency to focus on growing deposits and attracting account holders.
Appgate’s fraud protection delivers real-time solutions powered by advanced analytics and machine learning. Built on extensive experience and billions of transactions, these tools provide a holistic approach to fraud prevention, stopping threats before they impact your business.
Digital Threat Protection: This solution identifies phishing and impersonation threats, providing round-the-clock monitoring and collaborating with safe browsing providers to minimize exposure to fake content. It also works with hosting providers and Internet Service Providers (ISPs) to remove malicious content swiftly, offering victimization insights and traffic analysis to help institutions assess and mitigate the impact of attacks.
DetectTA: This solution is integrated seamlessly into Alkami’s digital banking solutions. It employs a sophisticated risk engine to automate fraud detection for both consumers and businesses, identifying account takeovers, abnormal transactions, and suspicious patterns. Financial institutions can block transactions or prompt additional authentication based on customizable rules.
Financial institutions using Alkami’s digital banking solutions and Appgate’s fraud protection solutions have successfully implemented measures to proactively prevent many fraudulent activities. A few examples are below:
Appgate DetectTA and Digital Threat Protection ensure early identification and prevention of phishing threats and risky transactions, helping institutions fortify against potential losses. As fraud tactics evolve, the Appgate platform’s adaptability ensures financial institutions stay ahead of emerging threats.
For a closer look, see our case study with Arkansas Federal Credit Union and learn how they leverage Appgate DetectTA to mitigate fraud losses effectively.
Appgate is a proud sponsor of Alkami Co:lab 2025, where we’ll showcase our fraud prevention solutions. Join us to explore how the powerful partnership between Appgate and Alkami can elevate your fraud protection strategies to new heights, ensuring your institution stays resilient.
