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If you are worried about financial crime in 2017, you have a right to be, according to a new white paper by FICO, showing that there will be more challenges to come this year, including everything from hacked smart devices to fingerprints being lifted by cyber thieves.
Smartphone threats, cybersecurity transparency, EMV confusion, hacked biometrics and illegal migration rings are all part of the financial crimes rising this year. In this paper leaders from FICO's fraud and financial crime group let people in on what financial crimes they think will be trending in 2017.
Smart devices gone wild
Smart devices are seen as a way to make peoples their lives better and easier, but financial or cyber criminals can use them to make their lives harder.
"I predict that in 2017 our personal lives, as well as infrastructure, will be brought down by the devices we design to make things easier," said Scott Zoldi, FICO chief analytics officer.
Can your fingerprints be stolen? Fingerprints are often promoted as being safer than using passwords, but they can be hacked. "Stolen fingerprints may be a big problem in the future if biometric technology is used to verify bank accounts, home security systems and even travel verifications," said said Doug Clare, vice president of FICO's cybersecurity solutions.
"You always have the option of changing your password, but you can't change your fingerprints," What about EMV technology? Here too they see issues, believing that a slow rollout will cause consumer confusion and can get in the way of it being effective.
The trends uncovered by FICO cover a lot of territory, ranging from enterprise fraud, analytics, to cybersecurity and cooperation with anti-money laundering. It maybe tempting to see these areas as being unrelated, but according to FICO that is not true. They are all interrelated when looking to keep consumers safe from fraudsters and hackers.
"Increasingly, the domains of fraud protection, cybersecurity and regulatory compliance are merging within institutions, which are taking a more holistic view of financial crime," said Bob Shiflet, vice president of financial crime solutions at FICO. "This is critical, as these areas share a need for rapid action based on real-time threat assessment."