8 Ways to Boost Fraud Detection with Video Surveillance and Analytics
Every year, fraud costs the financial sector billions of dollars in lost assets. It’s a relentless challenge for banks worldwide, made worse by increasingly sophisticated fraud tactics and methods.
To stay ahead, financial institutions must use every tool available to safeguard their customers and assets. One such tool is video surveillance and analytics. By integrating video technology and analytics with fraud detection systems, banks can gain real-time insights, detect patterns, and adopt a proactive approach to security. This not only helps detect fraud but also prevents it from escalating.
Let’s explore how video surveillance is revolutionizing fraud prevention, and the technologies banks can leverage to strengthen their institution’s defenses.
1. Real-Time Fraud Alerts
Fraud detection systems generate vast amounts of data, but not every alert signals a legitimate threat. Adding video surveillance introduces a critical visual layer, helping distinguish genuine fraud from false alarms.
For instance, a U.S.-based financial institution used video analytics to cross-reference transaction data with real-time footage. This integration significantly reduced false positives, enabling faster, more accurate responses. If a flagged transaction involved a large cash withdrawal, video footage could quickly confirm whether the person at the automatic teller machine (ATM) matched the account holder—speeding up action and minimizing potential losses.
2. License Plate Recognition
Drive-up ATMs and tellers often face unique security challenges, particularly in suburban and rural areas. License Plate Recognition (LPR) technology embedded in video systems provides a powerful tool to identify vehicles linked to fraudulent activities. For banks, this information can be used to flag repeat offenders or known fraudsters.
One Midwest bank saw a spike in fraud at its drive-up tellers and turned to LPR analytics for help. The system flagged vehicles associated with past offenders as they approached, alerting security teams in real-time. This swift action prevented additional fraud and reassured customers of the bank’s commitment to safety.
3. Behavioral Analytics
ATM skimming remains one of the most persistent threats to banks. Video surveillance equipped with behavioral analytics can identify unusual patterns, such as individuals loitering near ATMs without making transactions or using multiple cards in quick succession.
One Chilean bank implemented time-based person detection to address frequent skimming. The system triggered alerts when someone lingered near an ATM for more than 15 seconds without initiating a transaction. This allowed the bank to quickly dispatch security teams to investigate, reducing risks and enhancing customer confidence in using their ATMs.
4. Integrated Surveillance
ATM jackpotting—where criminals tamper with ATM machines to dispense large amounts of cash—is a growing global issue. Combining video surveillance with physical sensors provides an effective defense.
Cameras can detect unusual activities, such as tampering, a vehicle parked suspiciously close to an ATM, or a vehicle with no license plate, and trigger real-time alerts.
In one case, a European bank thwarted a jackpotting attempt when video surveillance flagged a vehicle backing up to an ATM late at night. Paired with motion sensors, the video system enabled the security team to intervene before any money was stolen, highlighting the critical role of integrated surveillance in fraud prevention.
5. Loitering Detection
Ensuring customer safety at ATMs, especially after hours, is a top priority for banks. Video surveillance with loitering detection analytics can help by identifying individuals lingering near ATMs for extended periods.
An urban banking customer used this technology to monitor ATMs after hours. The system automatically alerted security teams when someone remained in the area beyond the preset time limit. This proactive measure deterred potential criminal activity and ensured customers felt safe using the bank's facilities at any hour.
6. Video Storage with Hybrid Solutions
Retaining surveillance footage for extended periods can be costly, but hybrid storage solutions offer a practical alternative. Combining on-premises with cloud-based video storage, banks can securely retain critical data without the burden of extensive on-site infrastructure.
A Middle Eastern bank adopted a hybrid model, keeping recent footage locally for quick access while archiving older footage in the cloud. This allowed the bank to meet regulatory requirements and investigate fraud incidents efficiently without incurring excessive costs.
7. Camera-to-Cloud Solutions for Remote Monitoring
In some areas, installing on-site recorders is impractical due to space or connectivity constraints. Camera-to-cloud solutions solve this problem by streaming video directly to the cloud. This eliminates the need for on-site hardware while maintaining comprehensive surveillance capabilities.
A Southeast Asian banking customer implemented camera-to-cloud technology across its remote branches, ensuring reliable monitoring even in locations with limited infrastructure. This approach proved to be invaluable in safeguarding against fraud across the bank's far-flung locations.
8. Disaster Preparedness for Video Data
Natural disasters pose a unique challenge to video surveillance systems. Before crisis strikes, banks should take action to ensure that critical footage is preserved, even when on-site systems are compromised. Centralized evidence archiving allows banks to offload important video data to secure locations ahead of a disaster.
For example, a U.S.-based bank operating in hurricane-prone regions could use centralized archiving to protect its video data. Before a major storm, the bank can remotely transfer footage from vulnerable locations to cloud storage. This strategy ensures that fraud investigations can continue uninterrupted, even in the aftermath of a disaster.
Transforming Fraud Prevention with Video Analytics
Video surveillance and analytics are revolutionizing fraud prevention, giving banks the tools to detect threats in real-time, enhance customer safety, and streamline security operations. From stopping ATM skimming and jackpotting to tackling loitering and improving evidence management, integrating video technology with existing systems equips banks with powerful tools to counter financial crime.
As the fight against fraud becomes more complex, banks that embrace innovative solutions like video surveillance and analytics demonstrate their commitment to security, building trust and delivering exceptional customer service. By leveraging these advancements, financial institutions can safeguard their future and lead the charge into a safe, secure, and more intelligent banking experience.
Jeff Corrall is the chief product officer at March Networks, responsible for the company’s product strategy, product roadmap, research and development, and profit and loss. He also leads March Networks’ Strategic Partnership and Integration efforts. Corrall joined March Networks in 2001 as a software developer before transitioning into product management to oversee several portfolios, including transit, video management software, network video recorders, and edge devices. During his tenure, Corrall has worked in March Networks’ Ottawa, Milan, and Seoul offices. He holds an electronics engineering technology diploma from Conestoga College.
© March Networks
