What mechanism is usually implemented by banks to prevent fraudulent activities in payment and remittance services?Manual monitoring of all transactionsAutomated fraud detection systemsPhysical verification of all international transactionsDaily limits on all transactions
Question
What mechanism is usually implemented by banks to prevent fraudulent activities in payment and remittance services?Manual monitoring of all transactionsAutomated fraud detection systemsPhysical verification of all international transactionsDaily limits on all transactions
Solution
Banks usually implement Automated Fraud Detection Systems to prevent fraudulent activities in payment and remittance services. These systems use algorithms and machine learning to identify unusual patterns and suspicious activities, which could indicate fraud. This method is more efficient and effective than manual monitoring of all transactions, which would be time-consuming and prone to human error. Physical verification of all international transactions would also be impractical due to the volume of transactions. Daily limits on all transactions can be another method to limit fraud, but it can also limit legitimate transactions and may not be suitable for all customers.
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