Proactive cyber fraud response: a comprehensive framework from detection to mitigation in banks

Abstract

Purpose

This study addresses the ever-increasing cyber risks confronting the global banking sector, particularly in India, amid rapid technological advancements. The purpose of this study is to de velop an innovative cyber fraud (CF) response system that effectively controls cyber threats, prioritizes fraud, detects early warning signs (EWS) and suggests mitigation measures.

Design/methodology/approach

The methodology involves a detailed literature review on fraud identification, assessment methods, prevention techniques and a theoretical model for fraud prevention. Machine learning-based data analysis, using self-organizing maps, is used to assess the severity of CF dynamically and in real-time.

Findings

Findings reveal the multifaceted nature of CF, emphasizing the need for tailored control measures and a shift from reactive to proactive mitigation. The study introduces a paradigm shift by viewing each CF as a unique “fraud event,” incorporating EWS as a proactive intervention. This innovative approach distinguishes the study, allowing for the efficient prioritization of CFs.

Practical implications

The practical implications of such a study lie in its potential to enhance the banking sector’s resilience to cyber threats, safeguarding stability, reputation and overall risk management.

Originality/value

The originality stems from proposing a comprehensive framework that combines machine learning, EWS and a proactive mitigation model, addressing critical gaps in existing cyber security systems.

Citation

Chhabra Roy, N. and P., S. (2024), "Proactive cyber fraud response: a comprehensive framework from detection to mitigation in banks", Digital Policy, Regulation and Governance, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/DPRG-02-2024-0029