An essential holistic vision for fighting financial crime
Laurentian Bank acquires SAS® Fraud Framework
Laurentian Bank of Canada is a banking institution with operations across the country. Founded in 1846, it manages more than $24 billion in balance sheet assets and currently employs more than 3,800 people. The bank serves individuals and small and midsized businesses. It also offers its products to a vast network of independent financial intermediaries through B2B Trust and provides full-service brokerage services through Laurentian Bank Securities. Laurentian Bank is firmly established in Quebec, where it operates the third-largest retail branch network in the province.
Laurentian Bank has been experiencing major growth in the past several years. Its loan and deposit volumes have increased significantly, and its net income has been breaking new records for the past four years. "Our competitors know us for our flexibility and our agility, qualities that let us react quickly and allow us to, among other things, efficiently implement new processes to fight financial crime, thereby securing our constantly growing operations," said René Trépanier, Vice President of Compliance, Operational Security.
A 360-degree vision of the situation to effectively fight fraud
In fact, bank fraud is on the rise, in terms of both the number and the complexity of these crimes, and the most popular banking transactions are also the ones that are being most targeted by fraudsters. According to IDC, it is estimated that by the year 2013, more than 1 billion digital terminals will be linked to bank accounts, a situation that opens the door wide to cybercriminals. Simultaneous fraud on several accounts at once is also on the increase because the criminals know that few institutions can make their departments communicate among themselves, thus facilitating illicit activities. "It's no longer just a matter of developing systems that can effectively detect fraud. We must also develop a system that can create a 360-degree client profile, which will help us react quickly and avoid considerable losses," explained Trépanie.
The solution? SAS Fraud Framework, a system based on advanced analyses, a holistic vision and integrated case studies. This solution can collect all the information on an individual or an account in all of the institution’s departments and even from outside the institution (e.g., by analyzing social networks). “Fraudsters rarely operate in a random or isolated manner. This complete view of the situation will enable us to better detect fraudsters and potential networks of fraudsters,” added Trépanier. SAS Fraud Framework also manages the alert system based on the degree of risk established for each account as well as the investigations of these alerts. “Fraudsters are always looking for the easiest way. If a scam works one time, they will repeat it,” said Trépanier. “We have to anticipate these trends and act quickly. SAS Fraud Framework helps us tackle these cases more efficiently by giving us an overview of the transactions in an account. In addition, the system is flexible so we can adapt it to our reality and also adapt ourselves to emerging situations."
Laurentian Bank is already using SAS in other areas of activity, mainly for its credit risk and market segmentation operations. "We have developed business ties with SAS and have a great respect for their competence, meaning that we are going into this implementation project with confidence," Trépanier said.
Toward an integrated system for fighting financial crime
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Vice President of Compliance
Efficiently implement new processes to fight financial crime, increasing security for the bank's operations.
“Our goal in implementing this system is to quickly obtain an overview of our various business lines so as to better recognize and identify fraudsters.”
Vice President, Compliance, Operational Security