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Rising Fraudulent Credit Card Transactions - Coggle Diagram
Rising Fraudulent Credit Card Transactions
Delayed Fraud Identification by Customers
Limited second-layer authentication
Customers unaware of suspicious activity
Delayed reporting of unauthorised transactions
No alert for every transaction
Weak Control Mechanisms at Merchant & Channel Level
Skimming devices at ATMs/POS terminals
Weak authentication mechanisms
Inconsistent compliance monitoring
Merchants not following strict data validation checks
Rapid Growth of Digital Payment Channels
Higher exposure to fraud attempts
Expansion of digital banking services
Security upgrades lag behind digital adoption
Increase in online and POS transactions
Primary Root Cause Identified:
Lack of an intelligent, real-time fraud detection system capable of behavioural anomaly detection
Recommended Action
Deploying AI-driven fraud detection system with behavioural monitoring.
Inability to Detect Fraud in Real-Time:
No proactive fraud prevention framework
Lack of real-time risk scoring mechanism
No behavioural transaction monitoring
Over-reliance on static rule-based checks
Absence of AI/ML-based fraud detection system