Kazakhstani banks spend around 0.15% of the total annual volume of online transactions processed through their systems on anti-fraud measures. For example, a bank with a daily transaction turnover of 5 billion tenge may spend between 220 and 350 million tenge per year on transaction verification.
These figures were provided by Baraiq, a developer of anti-fraud solutions for banks. Based on data analysis, communication, and hands-on work with financial institutions, the company concluded that fraud prevention measures account for approximately 0.15% of the total volume of online transactions.
In practical terms, this means that for every 1,000 tenge transferred by a client within the same bank, the financial institution spends about 1.5 tenge on verification. If the funds are transferred outside the bank, verification costs increase to around 10 tenge per transaction.
Banks allocate these funds to software and licenses, monitoring and investigation teams, customer calls, staff training, and outsourcing services.
“For a small bank with 1 million online transactions per day and a daily turnover exceeding 5 billion tenge (around $4 billion annually), yearly anti-fraud expenses amount to just 220–350 million tenge ($400,000–600,000). In reality, this is a relatively modest amount. Every dollar invested in modern anti-fraud solutions prevents between $8 and $15 in losses, and with real-time monitoring and machine learning technologies, up to $20–30 per dollar invested,” Baraiq noted.
The company also reported that the average loss per victim of financial fraud in Kazakhstan is approximately 2.8 million tenge, while total annual losses nationwide exceed 30 billion tenge.
Previously, it was reported that the National Bank is preparing new artificial intelligence–based tools that will allow fraudsters to be identified even before they manage to deceive customers.
Read more on Kursiv.media.
Kazakhstani banks spend around 0.15% of the total annual volume of online transactions processed through their systems on anti-fraud measures. For example, a bank with a daily transaction turnover of 5 billion tenge may spend between 220 and 350 million tenge per year on transaction verification.
These figures were provided by Baraiq, a developer of anti-fraud solutions for banks. Based on data analysis, communication, and hands-on work with financial institutions, the company concluded that fraud prevention measures account for approximately 0.15% of the total volume of online transactions.
In practical terms, this means that for every 1,000 tenge transferred by a client within the same bank, the financial institution spends about 1.5 tenge on verification. If the funds are transferred outside the bank, verification costs increase to around 10 tenge per transaction.
Banks allocate these funds to software and licenses, monitoring and investigation teams, customer calls, staff training, and outsourcing services.
“For a small bank with 1 million online transactions per day and a daily turnover exceeding 5 billion tenge (around $4 billion annually), yearly anti-fraud expenses amount to just 220–350 million tenge ($400,000–600,000). In reality, this is a relatively modest amount. Every dollar invested in modern anti-fraud solutions prevents between $8 and $15 in losses, and with real-time monitoring and machine learning technologies, up to $20–30 per dollar invested,” Baraiq noted.
The company also reported that the average loss per victim of financial fraud in Kazakhstan is approximately 2.8 million tenge, while total annual losses nationwide exceed 30 billion tenge.
Previously, it was reported that the National Bank is preparing new artificial intelligence–based tools that will allow fraudsters to be identified even before they manage to deceive customers.
Read more on Kursiv.media.
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