CTOS IDGuard flags RM 319 mil in fraud apps since 2020

CTOS IDGuard, the national fraud bureau, has released its 36-month results, revealing that it has flagged potentially fraudulent applications amounting to RM319 million since 2020.

This critical system, part of CTOS’s suite of fraud and identification services, leverages an extensive database, including CTOS eKYC, CTOS Multi-face ID, and CTOS Digital Footprint, to detect and prevent fraud.

With nearly 7 million applications screened from member banks, covering over 65% of Malaysia’s banking assets, CTOS IDGuard plays a crucial role in safeguarding against the rising tide of online fraud in an era of increased digital transactions.

Battling the surge in online fraud

As online fraud escalates globally, the COVID-19 pandemic has further accelerated the adoption of digital solutions, including instant loans, real-time payments, digital onboarding, and contactless services.

This digital expansion has also brought about an upswing in fraud and cyber risks. Malaysia has witnessed over 55,000 cybercrime cases, resulting in losses of RM1.8 billion from 2021 to July 2023.

In this challenging landscape, CTOS IDGuard has stepped up its game, introducing enhancements to its fraud detection capabilities, streamlining the investigation process, and incorporating additional intelligence sources. Machine learning models have been deployed to boost precision and detection rates, ensuring its relevance and effectiveness in the ever-evolving digital finance sector.

CTOS IDGuard: Advancements in fraud detection

CTOS IDGuard employs a cutting-edge fraud and financial crime prevention engine developed by GBG. The system continually undergoes refinements to enhance fraud detection accuracy, reduce false positive rates, and improve operational efficiency.

Notably, three machine learning models for credit card and mortgage applications have been integrated, resulting in a significant 27% and 31% reduction in false positives for auto and personal loan applications, respectively. These improvements free up valuable time for fraud analysts, allowing them to focus on more complex fraud prevention challenges.

GBG ensures adaptive model training, incorporating data from emerging fraud patterns and investigation outcomes to maintain peak performance and minimize deterioration risk. This complements existing rule-based systems, elevating fraud detection accuracy and operational efficiency.

Over the past three years, CTOS IDGuard has played a pivotal role in screening applications for various types of loans, including car loans, credit cards, home loans, personal loans, and SME loans. Credit card applications make up the majority, with two million screened applications.

Approximately half of the flagged applications are confirmed as suspicious or fraudulent. Given that around two-thirds of Malaysians possess a credit card, the significance of CTOS IDGuard to member banks becomes evident. Its ongoing efforts are vital in safeguarding financial transactions and maintaining trust in the digital finance sector.