Banks complete rollout of CTOS IDGuard

KUALA LUMPUR: CTOS Data Systems Sdn Bhd, Malaysia’s largest credit reporting agency, announced the successful rollout of CTOS IDGuard, with Maybank, RHB Bank, CIMB, Alliance Bank, and AmBank making up the pioneer group of participating banks.

CTOS IDGuard is Southeast Asia’s first application fraud bureau, marking yet another major milestone for the company to stay at the forefront of financial services sector needs.

Group chief executive officer Dennis Martin said the CTOS IDGuard fraud bureau is powered by GBG Group Plc’s industry leading fraud detection engine which is able to provide the banking sector with real-time automated alerts on potentially fraudulent credit applications.

“At CTOS, we are continuing to bring world-class financial technology solutions such as IDGuard to life in the Malaysian market, while using homegrown talent and knowledge to ensure local implementation is the best possible.

“Over the past six months, CTOS IDGuard has been used to identify application fraud and today we are proud to publish the results of this effort,” he said in a statement yesterday.

Recent market research from GBG has shown that many financial institutions are aware of the likely increase in the potential threat from application fraud, with 51 per cent of Malaysian financial institutions expecting cases involving stolen identifications to increase, and 54 per cent expect scams to increase in the next year.

Martin said since its inception in July 2020, CTOS IDGuard has successfully identified and prevented potential fraud losses of up to RM50 million in fraudulent applications including personal loans, cards, auto-financing, mortgages, and

Small and Medium Enterprise loans, which equate to a 74 per cent increase from the banks’ normal detection rates.

Elaborating on the rollout, he said CTOS IDGuard have undergone over two years of planning, design, analysis, and production, as well as rigorous testing in its pilot phase and it will further develop and advance as more partners join the company.

“The feedback from participating banks has been very promising across the board, with partner banks sharing that investigation facilitation has increased by 21 per cent, decision-making confidence and operating efficiency have increased by 20 per cent, and in terms of value for money, IDGuard partners have saved over 23 times their investment in the solution,” he added.

Furthermore, he said CTOS IDGuard will become increasingly effective with three more member banks coming onboard in the next quarter, while several more have indicated their interest to participate, thus giving participating banks the robust, comprehensive, and data-rich resource needed to protect themselves against financial loss from application fraud. — Bernama

At CTOS, we are continuing to bring world-class financial technology solutions such as IDGuard to life in the Malaysian market, while using homegrown talent and knowledge to ensure local implementation is the best possible. Dennis Martin