FinTech Magazine March 2025 | Page 92

FRAUD DETECTION

Co-founder and Chief Strategy Officer : DataDome

Benjamin Barrier

Now that DORA is in play too , how much more important is security ? DORA takes aim at a serious problem for the financial industry . Despite being a prime target for criminals , the sector sometimes lacks adequate protection against cyber attacks . In fact , it is currently the second least cyber-secure sector in the UK .

Our most recent bot security report found that over half of banking websites had no protection against even the most basic of bot attacks - leaving them exposed to Account Take Over ( ATO ) fraud , DDoS attacks and widespread data scraping .

We all know attackers are increasingly sophisticated . Their bots have little in common with the simple crawlers of yesteryear : they are using highly complex software that can rotate through IPs , hide inside user sessions , look like browsers and mimic human behaviour .

Financial organisations handle such high volumes of transactions and sensitive data online , making effective fraud detection critical . AI-powered fraud detection techniques play a big part in mitigating losses and preventing catastrophe for businesses , both financially and operationally .

I am positive that Dora will serve as a wake up call to financial institutions - arm yourselves against this threat , or risk damaging customer trust and legislative penalties too .

92 March 2025