The future of financial security is being decided right now, not just by firewalls, but by advanced data structures that map criminal networks.
Capitec’s head of Financial Crime Nick Harris discusses the bank’s pioneering adoption of graph databases — a technology it affectionately calls “the spider web” — to pre-emptively stop sophisticated fraud rings and protect consumers before they become victims, in the seventh episode of Bank on it (watch the video below).
Bank on it is a video and vodcast series launched by Capitec in partnership with Business Day and hosted by Koshiek Karan, a former investment banker turned financial education influencer and fintech entrepreneur.
Bank fraud remains a very real threat in SA, according to the South African Banking Risk Information Centre. While phishing remains a significant threat, criminals are also targeting smartphones to gain access to banking apps. Fraudsters have become increasingly sophisticated in recent years, using social engineering to scam bank clients.
This episode of Bank on it puts the spotlight on Capitec’s fraud offensive strategy, showcasing how modern data science is replacing traditional security methods.
Harris, who has an extensive background in risk management, details the innovative use of graph databases, a nodal technology that maps relationships and connections across vast amounts of data. He explains how this system allows Capitec to see the network of a fraud operation — like a “spider web” — and analyse the degrees of separation between bad actors. This technology allows the bank to move beyond targeting single fraudulent accounts and instead dismantle entire criminal networks.
The conversation also delves into Capitec’s aggressive and effective fight against money laundering accounts. Harris notes the bank has developed highly specific models to identify these bad active behaviours. Its strategy is rooted in a proactive, pre-emptive approach: by identifying and stopping fraudulent accounts early, Capitec is able to prevent future victimisation, blocking criminals before they can defraud more people.
One in 25,000 bank transactions is fraudulent or is being used to launder money, reveals Harris. In a world of instant payments, the onus is on banks to act quickly when fraud is detected. Technology — and artificial intelligence in particular — has evolved considerably in the past five years, helping banks to quickly detect fraud.
Underlying these technological advances is the core strategy of building trust through transparency. By sharing its proprietary insights — including the success of its graph database technology — with the industry and regulators, Capitec has positioned itself as a leader committed to systemic financial security, rather than just organisation-specific protection. This collaborative, network-based defence, says Harris, is the only way to effectively fight financial crime at a country level.
This episode of Bank on it offers actionable insights into how next-generation data structures can be leveraged to shift security postures from reactive clean-up to proactive prevention. Viewers will gain valuable knowledge on applying “degrees of separation” analysis to their own business risks, understanding the massive financial and social benefits of pre-empting criminal behaviour and how to integrate an ethical, transparent approach into their security strategy.
Watch it now:
About ‘Bank on it’
As a leading financial institution, Capitec is committed to empowering individuals and businesses. Through its Bank on it leadership series of videos and vodcast, the bank provides authentic conversations and actionable insights that help entrepreneurs and business leaders navigate the complexities of today’s market, reaffirming its commitment to financial inclusion and innovation.
New episodes of Bank on it premiere every alternate week on Business Day TV (DStv Channel 412). You can also find them on the Business Day website and Business Day TV YouTube channel and Capitec’s YouTube channel and the bank’s website.
Follow the conversation and share your thoughts on social media using the hashtag #BankOnIt, and by following Capitec on Facebook, Instagram, X and LinkedIn.
This article was sponsored by Capitec.
