Financial institutions face an expanding range of threats aimed at defrauding account holders and siphoning funds. From phishing attacks and credential theft to sophisticated social engineering tactics and account takeovers, the risks are numerous. Moreover, financial entities strive to provide seamless user experiences, often hesitant to introduce barriers to online banking platforms that could inconvenience customers or members. 

Striking the balance between advanced fraud prevention measures and user-friendly transaction processes is crucial. Alkami partners with Appgate to help financial institutions find this delicate balance to detect and disrupt fraud schemes without introducing friction for their end users. 

Identifying the Challenge

In 2023, Appgate observed an alarming 81% surge in phishing incidents among our clientele, mirroring a broader trend in the industry. This surge coincides with an ongoing evolution of fraud schemes targeting financial sectors, with perpetrators leveraging cutting-edge technologies such as artificial intelligence (AI) to enhance their social engineering tactics. Unlike in the past, where phishing attempts were often easily identifiable due to linguistic errors, the advent of Generative AI enables attackers to craft sophisticated and personalized messages, making them harder to spot and resulting in increased credential compromises.

Financial institutions also grapple with the complexity of monitoring various payment types offered to account holders. Modern consumers and businesses expect a wide variety of digital banking services, from peer-to-peer payments (P2P) to member-to-member (M2M) payments to business transactions, each presenting its own set of fraud vulnerabilities. Limited visibility into fraudulent activity patterns exacerbates these challenges, leaving fraud teams scrambling to mitigate losses reactively rather than proactively preventing them.

Furthermore, many institutions rely on reactive fraud solutions, which only alert their teams after an attack or fraudulent transaction has already occurred. This reactive stance consumes valuable resources that could otherwise be invested in preemptive fraud prevention strategies.

A Layered Approach

To address these multifaceted fraud concerns effectively, financial institutions must adopt a layered approach that aims to detect and disrupt fraud at multiple stages. The partnership between Alkami and Appgate offers a suite of solutions empowering financial institutions in their fight against fraud. The solutions include Digital Threat Protection, which identifies phishing and impersonation threats, and DetectTA, designed to pinpoint and halt risky transactions.

Appgate Digital Threat Protection serves as a frontline defense, detecting fraudulent activities such as website replication or social media impersonation in their earliest stages. With round-the-clock monitoring, this solution swiftly identifies threats and collaborates with safe browsing providers to minimize exposure to fake content and then works with the relevant hosting providers and Internet service providers (ISPs) to remove the infringing content. Additionally, it provides traffic analysis and victimization insights, enabling financial institutions to gauge the impact of attacks and mitigate potential account takeovers.

Alkami’s partnership with Appgate extends to fraud detection during online banking sessions via an in-depth integration with Appgate DetectTA. Integrated seamlessly into Alkami’s online banking platform, DetectTA employs a sophisticated risk engine and robust rules to automate fraud detection for consumers and businesses alike. This powerful tool identifies account takeovers, abnormal transactions, fraudulent patterns, and can block transactions or prompt for additional authentication based on customized configurations.

Real-World Fraud Prevention with Alkami’s Online Banking Platform

Numerous Alkami financial institutions have successfully implemented Appgate DetectTA, proactively preventing various fraudulent activities. Examples of suspicious activities monitored by DetectTA include: 

• New automated clearing house (ACH) accounts followed by credit or debit external transfers
• Account maintenance activity and changes from unusual locations or specific countries 
• Suspicious M2M transfers
• Suspicious account access or changes with ability to block access to P2P
• Excessive failed login attempts followed by excessive transactions
• Origin and destination account monitoring and much more…

Appgate DetectTA identifies suspicious activity proactively via the integration to Alkami’s online banking platform and can help your organization prevent these risky transactions, fortifying financial institutions against potential losses. As fraud tactics evolve, DetectTA remains adaptable, ensuring emerging threats are promptly neutralized. See our case study with Arkansas Federal Credit Union to learn how they are leveraging Detect TA to proactively mitigate fraud losses with Appgate DetectTA. 

Appgate is a proud sponsor of Alkami Co:Lab 2024 and will be showcasing our Digital Threat Protection and DetectTA fraud prevention solutions. Join us as we unveil how the powerful partnership between Appgate and Alkami can elevate your fraud protection strategies to new heights!