A number of unique features in the Datawatch systems have contributed to their success. They are:
- Highly automated, reducing the number of staff required to monitor for non-compliances;
- Cost-effective compared with conventional systems – four times the number of cases can be investigated by half as many people;
- Highly accurate, reducing false reports of fraud which drain banks’ resources and undermine customer confidence;
- Broad-based, allowing simultaneous investigation of all a customer’s accounts, together with e-mail traffic, voice recordings and instant messages;
- Legally watertight, as each case study maintains a legal chain of custody which cannot be subsequently altered, enabling information gathered to be used as evidence in court;
- Compliant with the Financial Services Authority (FSA) requirements.
Andrew Newcombe, Datawatch International’s compliance specialist, said: “Unfortunately, the manual systems used by banks often throw up too many false positives – around 95% – and these cases take too long to resolve, leading to delays and frustration for the customer, who may be investigated simply for using a credit card abroad or making a large money transfer.
“Our systems are based on establishing links between existing sources ofinformation, both internal and external to the company. They are exceptionally flexible and also very fast, so cases can be investigated in minutes rather than hours or days, helping banks to limit the damage caused by any one fraudster before it escalates.”
He said that one major customer was dealing with nearly 500 cases of suspected fraud every day and expected this number to pass the 1,000 mark within a year. One case was reported recently to have cost a bank 50 million in fines, legal fees and remedial public relations to re-establish its good name.
Andrew added: “Fraud investigation is now the hottest topic in the industry. Half of our meetings with companies in the financial sector relate to this issue, and we believe it will increase still further as the problem escalates – particularly on the Internet.”
About Datawatch Corporation:
Datawatch Corporation helps organisations easily access, store, distribute, transform and analyse information throughout the enterprise. From report management and analytics to data transformation and Internet presentment, Datawatch Corporation provides solutions that allow organisations to fully integrate and leverage their existing sources of information. Datawatch
products are used in more than 20,000 companies, institutions and government agencies worldwide.
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