In today’s fast paced financial environment, banks and financial institutions (FIs) are racing to address increasingly sophisticated fraud threats. Customers demand seamless and secure service, while regulators push for stricter compliance. The question is: Can outdated fraud prevention systems meet these demands?
In 2024 alone, global banking fraud losses exceeded $45 billion, while cybercrime inflicted over $16.6 billion in damages worldwide, a staggering 33% increase from 2023. Meanwhile, emerging threats like deepfake fraud surged by 900%, and synthetic identity fraud losses jumped 7% in just the first half of 2024, underscoring the urgent need for smarter, AI-powered defenses that can keep pace with today’s sophisticated criminals.
Clari5 is transforming how FIs manage fraud and compliance with its real-time, unified enterprise fraud management (EFM) and anti-money laundering (AML) platform. Unlike traditional tools that only address narrow fraud use cases, Clari5 delivers a single, seamless solution that covers all banking channels, enabling banks to stay ahead of financial crime, ensure regulatory compliance, and elevate the customer experience.
The Neuroscience of Fraud Prevention
Clari5 has been transforming fraud prevention over the last two decades, iterating continuously to address challenges typically faced by large FIs and to provide an enterprise-wide solution equipped for the new-age fraud landscape. Just as the brain processes threats instantly, Clari5 can help process fraud intelligence across channels in milliseconds.
1. Real-Time, Enterprise-Wide Fraud Prevention
Unlike traditional systems that monitor only certain channels (e.g., card or payment fraud), Clari5 works across ALL banking channels: Core Banking, ATM, branch, internet banking, mobile, and applications by monitoring financial and non-financial transactions in real time.
For example: When fraud occurs in one channel, Clari5 immediately blocks all suspicious activity across the bank, preventing further damage.
2. Unified Fraud and Compliance Management
Too often, fraud detection and AML systems operate in silos. Clari5 combines fraud detection and AML into a single unified platform. This ensures compliance without duplication, enhances operational efficiency, and simplifies regulatory reporting.
3. AI-Powered Behavioral Analytics
Traditional solutions rely on outdated rules or statistical models, Clari5 uses cutting-edge AI and machine learning (ML) to analyze customer behaviors across multiple touchpoints. With behavioural analytics, Clari5:
- Detects anomalies in real time.
- Learns from previous patterns to stop fraud before it happens.
- Continuously adapts to evolving risks, making FIs proactive, not reactive.
4. Built to Scale
Clari5 can scale seamlessly to handle massive transaction volumes. It integrates effortlessly with your current systems, ensuring minimal disruption and faster value realization.
5. Customer-Centric Design
Clari5 doesn’t just stop fraud, it also improves the customer experience.
Unlike generic fraud alerts that frustrate customers by halting legitimate transactions, Clari5’s AI learns each customer’s transaction behavior. This reduces false positives and enables smooth, secure transactions. A win-win for the bank and its customers!
Why Clari5 Stands Out
Enterprise Fraud Management vs Traditional Systems
| Evaluation Criteria | Clari5 | Traditional Channel-Based Silo Solution | Fraud Systems Bundled with Payment Platforms |
|---|---|---|---|
| Real-Time Enterprise-Wide Monitoring | Unified, real-time monitoring across all banking channels. | Primarily focuses on card fraud prevention; other channels lack coverage. | Focused on payment monitoring; lacks real-time enterprise-level coverage. |
| Cross-Channel Fraud Prevention | Covers ATM, branch, mobile banking, internet banking, and realtime payments. | Siloed systems lead to incomplete fraud monitoring across diverse channels. | Limited to payment-related fraud monitoring. |
| AML and Compliance Integration | Fully integrates fraud detection with AML compliance in a unified workflow. | Separate tools for fraud and AML cause operational inefficiencies. | Basic integration, primarily focused on transaction fraud detection. |
| Behavioral Analytics | Uses AI/ML to analyze transaction and customer behaviors in real time. | ML models are adaptable but do not match the advanced insights and real-time capabilities. | Focus is on transaction statistics, not holistic customer behavior. |
| Customer Engagement | Creates personalized fraud detection rules to minimize false positives. | Minimal focus on enhancing customer experience during fraud detection. | Does not emphasize customer engagement in its fraud solutions. |
| Scalability Across Transaction Volumes | Highly scalable and performs in high-transaction environments. | Struggles in high volume, multi-channel transaction scenarios. | Suited for midsized businesses with lower transaction volumes. |
| Deployment Time and Costs | Faster deployment and cost-effective, ensuring high ROI. | Requires longer setup and onboarding investments, higher costs. | Slower deployment with moderate to high upfront implementation costs. |
| Monitor Beyond Transactions | Profile changes, device registrations, and login attempts often precede fraud. Supports monitoring every interaction. | Focus tends to be on transaction-related insights rather than actively tracking changes in user behavior and device registrations. | Solution typically focuses more on transactional anomalies without the same level of emphasis on user behavior and identity profile changes in real time. |
| Identify Victims & Villains | Distinguish between innocent victims and customers complicit in fraud (e.g., mule accounts). | It does not emphasize the differentiation between victims and guilty parties to the same extent. They lack ML-based mule detection. | Solution might identify suspicious transactions but without the nuanced risk assessment that distinguishes between innocent victims and those involved in fraud. |
| Adopt Identity-Centric Risk Assessment | Assess risk not just at transaction level but at the identity level. Use behavioral biometrics, device fingerprinting, and digital identity linkage to flag fraud before it happens. | Device Intelligence & Behavior Biometrics is not supported. They integrate with third-party vendors, which is complex and costly. | They are known for using data analytics but may not equally prioritize behavioral biometrics and identity security techniques. |
The Future Belongs to Intelligent Banks
As financial crime continues evolving at unprecedented speed, competitive advantage will belong to institutions that can prevent rather than detect, enhance rather than add friction, and generate revenue rather than merely control costs.
This intelligence revolution isn’t coming, it’s here. While legacy systems struggle with architectural constraints and operational limitations, intelligent banks operate with next generation fraud prevention that transforms security into competitive advantage (anchored in principles such as those outlined in Clari5’s earlier article 25 Tenets for the Future of Fraud Risk Management)
The Choice Is Clear
FIs face a defining moment: continue with yesterday’s detection-focused limitations, or embrace tomorrow’s prevention-focused intelligence.
The banks choosing intelligence aren’t just improving their fraud systems—they’re fundamentally transforming their relationship with risk, customers, and revenue generation.
Leading banks in Asia, Africa, and the Middle East have reduced fraud losses by up to 70% within 6 months of deploying Clari5’s real-time EFM and AML platform, which processes 10,000+ transactions per second and protects over 340M accounts.
Explore Case Studies or Request a Demo to explore Clari5’s intelligence advantage.
