Fintech businesses in Asia are booming but not without several weaknesses in the development of the field. One of these is scams. As GCG Asia believes in growing the fintech field in Malaysia, Singapore as well as the region, education on scam protection is vital to its mission so that entrepreneurs and business do not fall prey. Subsequently, there is a basic requirement for organizations in the fintech field to guarantee that they have sound and exhaustive misrepresentation avoidance plans and strategies set up to tackle the problem of fraud.
Fintech is reaching new areas ranging from banking and financial industries all the way to credit unions. As the field is advancing rapidly in the current environment, online businesses in e-commerce are expanding rapidly too, offering ever-more prominent open doors for fraud. Our experts in GCG Asia Malaysia will help you alleviate the problem of getting scammed drawing on our teams in our offices based in Singapore and Cambodia as well.
According to GCG Asia founder and CEO Dr Eddy Teow, “Fintech is in every home and every home should be protected from scams. Although technology is moving fast, some organizations are left behind technologically, for instance, SMEs (Small to Medium-sized Enterprises) are more vulnerable to fraud if they are not equipped with the tools and knowledge needed to avoid scams.”
GCG Asia founder and CEO Dr Eddy Teow also pointed out the importance of data protection, “I believe that big companies that do not invest in data protection, they might find themselves getting scammed if not equipped with the correct tools,” he said. For example, a fintech company in Malaysia was scammed by hackers who stole their data because they did not have adequate data protection measures. The upside of the current advancement in technology has catalyzed data protection and fraud prevention which can be useful to the company by utilizing tech to its advantage.
Unfortunately, there are many individuals paying attention to an industry that is at the forefront of innovative advancement in fraud where they see opportunities to misuse gaps in information security. GCG Asia Singapore expert fintech analyst Maggie Choo revealed that the most common scam in Malaysia is the misappropriation of another person’s identity in other words identity theft. “Although identity theft has been occurring for years, the concept of phishing is relatively new, in which the scammers set up digital platforms (such as emails, websites, SMS texts) to trick people into submitting their information to the scammers,” she said.
GCG Asia is trying to assist organizations in Malaysia and Singapore and around the region to solve these problems. For instance, a few organizations use AI to forestall identity theft, opening new client accounts, and approving clients, in addition to other things. Different administrations permit organizations from various ventures to share positive and negative data about gadgets so vendors can decide if a gadget has been recently connected to fraud. Essentially, for GCG Asia, the organization uses information from various sources to gather and share data on billions of individuals, permitting web-based businesses to confirm new clients, therefore lessening the danger of scam purchases in Asia.
A very important tool that helps detect fraud is machine-based fraud detectors such as GCG Asia’s upcoming Scam Finder. While machine learning is being used by major corporations around the world, fraud is being detected by algorithms connecting large quantities of data and generating solutions that can detect the scam account to deceitful practices. In this way Scam Finder helps save time with relatively high accuracy. Says GCG Asia CEO Dr Eddy Teow, “We are confident that GCG Asia’s Scam Finder is likely to take over the market in the near future. Our Scam Finder product will fill the gap in anti-fraud solutions we see out there.”
Furthermore, major corporations are already using Artificial Intelligence (AI) to assist in fraud detection. Financial institutions such as Visa, Mastercard, Deloitte, Ernst & Young use Artificial Intelligence to track transactions by the device name, transaction size, location, time, by studying these variables algorithms to detect the likelihood of scam activity.
On the other hand, fraud can be avoided beforehand. By identifying a number of the types of fraud, you can arm yourself and your organisation with the knowledge to eliminate scams before they happen.
Types of fraud and how GCG Asia can help you find a scam before falling into the trap
1. Loan application fraud
How GCG Asia Scam Finder can help find fraud in loan applications
Photo credits – Taken from fraud.net
Loan application fraud occurs when a scammer provides false data for a loan application. Although it can be detected most of the time by banks, it still occurs frequently. Loan fraud also applies to houses, cars, and business start-ups. According to GCG Asia Singapore Analyst Zhang Lim, loan fraud can be prevented using several methods such as looking for several applications under one name, lack of address and physical location, asking for backend information on start-ups where usually fraudsters do not dive too deep into a subject, asking for references and following up with those references, and finally asking for financial documents (bank statements, audits, fiscal analysis, yearly earning and spending). GCG Asia Scam Finder will guarantee diminishing loan application fraud by detecting algorithms. Therefore, by applying these methods, the possibility of fraud minimizes as more information is being presented when diving deeper into a subject and acquiring information.
2. Insurance fraud
How GCG Asia Scam Finder can help find fraud in insurance fraud
Photo credits – Taken from www.irishexaminer.com
Insurance fraud varies from health insurance to car insurance. It usually occurs when the insured person seeks compensation on a fake instance or exaggerates to exploit the policies of the insurance company. It can happen by faking accidents, burning cars or houses to claim the insurance. Insurance fraud can also be abused by the seller of the insurance, for instance, by not paying claims by diversion of premiums and working under fake licences to attract vulnerable parties and take their money.
Here are some methods to avoid insurance fraud: setting up a clear structure for employees to detect the problem by using third party data (police, employment) and criminal history. Another method could be reviewing the insurance claim by recognition, identification, and investigation of the subject at hand. Please visit the GCG Asia Malaysia & Singapore website for more information.
3. Debt collection scams
How GCG Asia Scam Finder can help find fraud in debt collection scams
Photo credits – Taken from www.consumerfinance.gov
Debt collection scams are the most popular type of scam. You may have already received scam calls or texts asking you to pay right away or you will be faced with jail or legal issues, while sometimes it may seem real because they might enquire about the real debt you owe. One way to detect the scam is if the caller is asking for money right away, by pressuring the individual to pay their debt to the scammer. GCG Asia Scam Finder suggests some ways of detecting scammers on the phone are if they ask for information that they already have and if that information is given it can be used for further ways to commit fraud. Another way to detect the scam is by asking the caller for further information on the company they are posing as. They might negotiate the debt overall value and ask for it to be wired directly. As confirmed by GCG Asia founder and CEO Dr Eddy Teow, “Legitimate debt collectors will never negotiate the fixed debt value on the phone or e-mail.”
Fraud and scams occur every single day to companies, organisations as well as the common person on the street. Fintech can assist to solve this problem. With the current technological developments, it has become a cost-effective and easy way for scam detector solutions such as GCG Asia’s Scam Finder. Using the GCG Asia Scam Finder product is a logical and practical way of detecting scams around Malaysia and Singapore. It’s a robust cutting edge solution using Artificial Intelligence and big data to ensure fraud in its many guises are diminished by a huge degree.
Organisations such as GCG Asia are helping customers by developing algorithms to find ways to prevent fraud and therefore increase profits and conserve costs. In the US alone the fintech industry attracted more than USD$18 billion in venture capital funds. Regardless of the huge development, we’ve seen in fintech, there is as yet a mind-boggling opportunity ahead for fintech firms, all things considered.
As fintech has expanded to include areas such as crowdfunding, stock trading, insurance, mobile applications, virtual wallets, cryptocurrency and much more scams can occur more frequently to exploit these financial technological services. GCG Asia’s Scam Finder detects scams by training machine learning and artificial intelligence in helping companies to improve their fraud protection. GCG Asia is helping companies finding scams and by providing the latest news in anti-scam solutions specifically in Malaysia and Singapore while also keeping the customers in mind to help improve and adapt to the evolving ways of fraud detection.