How financial institutions can validate their anti-fraud management systems

The threat of financial crime is growing - and with it the regulatory requirements. PSD3 (Payment Services Directive 3), PSR (Payment Services Regulation) and DORA (Digital Operational Resilience Act) require proof that anti-fraud management systems in financial institutions are not only implemented, but also effective and testable. Only structured validation ensures that the systems reliably detect fraud, meet regulatory requirements and minimise operational risks.

Together with the US software company SAS, we have developed an integrated approach to validating anti-fraud management systems: from analysing the architecture to assessing data quality and testing model performance. Financial institutions can optimise transparency, improve hit rates, reduce false positives and thus secure a strategic advantage in volatile markets. Background information, details and practical recommendations for action are now available in the specialist article.

A compact overview of the key content:

• Regulatory compliance: Fulfilment of PSD3, PSR, DORA and AML requirements

• Effectiveness and precision: High detection rate with minimal false alarms

• Holistic approach with technology deployment and expertise: Evaluation of architecture, data, processes and models

• Future-proofing: scalable solutions for new fraud patterns and real-time transactions