Nicolas Severino Jun 22, 2021 7 min read

Projections versus Reality of Electronic Fraud in Colombian Banking

In the first half of 2020, complaints of fraud in relation to digital transactions, through banking portals, PSE, and mobile banking increased by 59%.


In the first half of 2020, complaints of fraud in relation to digital transactions, through banking portals, PSE, and mobile banking increased by 59% 2. Mechanisms such as social engineering over the phone, where users are tricked into stealing their resources or obtaining access to their financial products to make purchases, were among the most used to break the security of digital banking.

The projections of possible electronic fraud that were calculated for 2020, although alarming when exceeding 74 million dollars, turned out to be very conservative when the real figures of the losses due to bank fraud were known, which consistently exceeded 94 million dollars.

The number and amount of transactions that would receive claims according to the projections would represent 0.0036%.

A figure that at first light would seem minimal, since it would be equivalent to that out of every 100,000 pesos only 3.6 would be the subject of this type of claims, in the financial institutions with the largest volume of operations in the country.


But when doing the numerical conversion and reaching the billions of pesos in claims, it is when the alarms of a financial system are set off that cry out for investment in technology that increases user protection rates and efficiently reduces the number of claims and with this the losses in the sector.

The projections made for 2021 do not tend to decrease, if not, on the contrary, they would exceed 50% more than the immediately previous year, reaching US $ 165.6M, which would then represent 0.303% of fraud.

The average, according to Revelock's analysis, would be 3 out of every 1,000 bank users affected by this type of fraud, taking into account the $ 6.4 Million Colombian pesos for electronic fraud during 2020.

These figures are not encouraging and, on the contrary, they set off alarms throughout the sector. Even though Colombian Banking makes a significant effort to control fraud, it must think even more about strengthening protection strategies through new technologies in the market. All this, without increasing the friction of digital channels and in order to guarantee the protection of both old and new users.

It is essential for banking to provide tools that combine behavioral biometrics, network and device analysis with hybrid artificial intelligence and Deep Learning technology to create unique fingerprints, which allow users to know continuously, identify cybercriminals and mitigate risk regardless of the type of attack.


The experience of the manufacturer and developer of these new technologies will be essential for a successful implementation that leads to the reduction of fraud and substantially mitigates the exposure to it, while detecting in a non-intrusive way behavioral and environmental anomalies.

Revelock helps financial institutions and fintech companies fight fraud with an "Active Defense" approach that reveals and responds to online fraud schemes and identity-based attacks.

Active Defense means deploying actions to actively detect and deter adversaries, increasing the cost and complexity required to carry out attacks. Organizations continue to experience all kinds of fraud due to vulnerability patching, app bugs, phishing, and other attacks.

As the sophistication of adversaries increases and techniques for launching attacks become easily accessible, companies must focus not only on passive approaches but more than ever on relying on an active defense approach not only to detect, but also to continuously adapt and respond to ever-changing threats, in order to deter fraudsters and prevent fraud.

In this sense, the Revelock Fraud Detention & Response platform continually verifies users and scores risk to help companies to

  • Prevent the ATO; protect the customer and the brand
  • Reduce fraud losses without interrupting the customer experience
  • Reduce fraud operations and call center costs
  • Increase the effectiveness of your new account and transaction monitoring systems
  • Comply with the SCA / PSD2, CNP / 3D-Secure and AML regulations

Prevention through investment in technologies of this type will allow, at this time of efforts in bankarization in Colombia, not only to strengthen the trust of users and the customer experience in electronic operations, but also to further shield the positioning of the companies. financial institutions and their credibility.


Nicolas Severino

Nico brings more than 20 years of experience with an international track record in general management, marketing, and business development at companies like Symantec, Veritas and TODO1 Services. Fluent in English, Spanish and Portugese, he has managed diverse, dispersed, and multi-cultural teams and now specializes in scaling Fintech, Cyber Security, and Artificial Intelligence startups.