HSBC has today announced a multi-year partnership with fraud prevention company Silent Eight to help the bank fight financial crime.
Through implementing Silent Eight Alert Resolution, HSBC has aimed to improve its manual processes and existing statistical models. The goal is to decrease fraud risk while simultaneously increasing efficiency.
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Matt Brown, HSBC’s Group Head of Compliance Services, said: “Given the growth in alert volumes, and unpredictable spikes driven by global volatility, we saw an opportunity with Silent Eight that would give us the ability to close alerts quickly and accurately.”
Silent Eight’s solution works by investigating and resolving cases in the same way an analyst would – according to the fintech, in a quicker, more precise way.
Following a successful trial period, the solution is set to be integrated into HSBC’s existing infrastructure to provide case adjudications that are explained and auditable.
Martin Markiewicz, Silent Eight CEO and co-founder, said: “We’re delighted to find a partner that shares our focus on eliminating financial crime. HSBC’s dedication to this project is just one aspect of their tireless commitment to improvement, and to helping drive AI innovation across the industry. We’re proud to partner with them on their mission to make the world safer.”
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By GlobalDataAdding to that, HSBC’s Global Head of AML and Sanctions Screening, Ben Rayner, said: “Silent Eight’s business case was extremely compelling. We have chosen their solution as we believe it will provide significant business benefits across all our success metrics.”
Sufficient fraud alerts
The announcement comes after the Lending Standards Board (LSB) criticised banks for not providing customers with sufficient fraud alerts.
Under the voluntary code of conduct introduced in May, banks must present customers with ‘effective’ warnings about scams when they are making payments online. In addition, the code states that these alerts must be understandable, clear, impactful, timely and tailored to the customer.
HSBC along with eight of the UK’s major banks, including Barclays, NatWest, Lloyds, and Santander, signed up to the code.
However, LSB said that in limited cases an absence of warnings resulted in breaches of the code. The watchdog also found that arbitrary thresholds resulted in transactions below certain amounts either not receiving a warning or only generic text.
HSBC’s most recent alliance with Silent Eight may be in response to these claims made by LSB.
LSB did not name any specific banks within its review.
