Journal of Business & Economic Policy

USE OF CUSTOMER HABITS IN DETECTION OF DIGITAL CHANNEL FRAUD
Erkut BALOGLU,Elif GUNEREN GENC

Abstract
The purpose of this study is to investigate the use of channel usage habits of bank customers to detect channel fraud. If a bank can analytically understand the digital channel usage behavior of its customers, it can prevent fraud or cash outflows by taking advantage of the differences between the behavior of the fraudster and the customer in a potential channel/account hijacking case. The study examined the characteristics of transactions made by 950 customers of a widely used bank in Turkey in the channels and customer behavior. Independent variables such as the location where the customer logs into the digital channels, the password entry times during login, the time elapsed between two consecutive digital channel entries, the number of transactions made during a channel login, the number of active credits during channel use, the number of transactions made, the use of preset credit, and the frequency of digital channel use have been found to be statistically significant in distinguishing between genuine customers and fraudsters.

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