False positives and false negatives

How best to leverage adverse media searches in the battle against financial crime

Financial institutions face constant challenges to maintain the delicate balance between preventing fraud and maintaining customer satisfaction. False positives and false negatives, inherent drawbacks of transaction monitoring systems, pose significant risks to financial institutions. These inaccuracies can lead to financial losses, reputational damage, and regulatory fines and penalties.

The problem of accumulating too much information has plagued the early phase of technology and skilled analysis rollouts. In an effort to capture every possible impropriety, banks are collecting too much data. Consequently, they now must consider the problem of managing both false positives and false negatives, often needing help focusing on what is most relevant and valuable to their searches.

In this white paper, we will look at this problem, why it has become so important to address it, and how new technology and skilled researchers can help solve it.