KUALA LUMPUR – CTOS Data Systems Sdn Bhd, yesterday announced the successful rollout of CTOS IDGuard with Maybank, RHB, CIMB, Alliance Bank and Ambank making up the pioneer group of participating banks. CTOS IDGuard is Southeast Asia’s first application fraud bureau, marking yet another major milestone for the company to stay at the forefront of financial services sector needs.
The CTOS IDGuard fraud bureau is powered by GBG’s industry-leading fraud detection engine which can provide the banking sector with real-time automated alerts on potentially fraudulent credit applications.
“Today, banks participating in the fraud bureau are sharing applicants’ demographic data and application data to sieve out bad actors and prevent fraud loss. This year, 40% of Malaysian FIs are planning to invest in device fingerprinting to be able to identify suspicious devices used in applications. As banks equip themselves with richer data intelligence and can share data beyond basic profile records, the efficacy in fraud detection and prevention using the fraud bureau is anticipated to continuously increase.” commented Dev Dhiman, Managing Director of APAC, GBG. (approval in progress)
Further commenting on the details of the rollout, Martin said, “Having undergone over two years of planning, design, analysis and production as well as rigorous testing in its pilot phase, CTOS IDGuard will further develop and advance as more partners join us.”
“The feedback from participating banks has been very promising across the board, with partner banks sharing that investigation facilitation has increased by 21%, decisioning confidence and operating efficiency have increased by 20%, and in terms of value for money, IDGuard partners have saved over 23 times their investment in the solution. This successful implementation of CTOS IDGuard cements our role as one of Malaysia’s leading fintech providers.”
CTOS IDGuard will become increasingly effective with three more member banks coming on board in the next quarter and several more indicating interest to participate, giving participating banks the robust, comprehensive, and data-rich resource needed to protect themselves against financial loss from application fraud.
Recent market research from GBG has shown that many financial institutions are aware that the potential threat from application fraud is likely to increase, with 51% of Malaysian financial institutions expecting cases involving stolen IDs to increase and 54% expecting scams to increase in the next year.
This may lead to a situation where non-member banks are perceived as easier targets for fraudulent activities.