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The mandatory geolocation in banking transactions came into force in Mexico as of March 23, 2021.
The mandatory geolocation in banking transactions came into force in Mexico as of March 23, 2021. Although many users find it difficult to transition to the implementation of this standard, it is an excellent tool, not only for the prevention of money laundering. of assets and the financing of terrorism, but to strengthen the digital security of banking.
Implementing new systems that can guarantee the security of banking operations and their users is a very important plus to prevent cybercrime and electronic fraud. And even though this new standard may seem a bit invasive and cumbersome at first for some users, the truth is that it constitutes a useful tool when it comes to strengthening security, significantly reducing the level of exposure of operations.
There are solutions on the market that combine behavioral biometrics, network and device analysis (including geolocation) with hybrid artificial intelligence and Deep Learning technology to create unique fingerprints, which allow users to know continuously (Know Your User), identify cybercriminals and mitigate risk, regardless of the type of attack, and generate risk level scores based on the combination of anomalous factors that may occur in each user session.
This allows financial institutions to address the problem of electronic fraud in a differential way that will bring great benefits for everyone, while not affecting the user experience in the digital channel.
In this way, fraud teams will have the capabilities and tools to analyze historical data, identify scammers who operate in their online banking systems, understand how they operate and create automated defenses to stop them, taking care of the anonymity of user data.
The expansion of regulations arises from the evolution of social contexts and emerging needs, which is why we must understand it properly. Seeking to implement it in a profitable way will not only benefit the State, but also the banking entities and therefore their clients.
And once they understand that their location data will not be constantly collected and that they will be treated in accordance with data protection policies and regulations, they will also understand that it is one more layer of protection for themselves and for their patrimony, which they have deposited in the hands of the financial institutions in which each one has trusted.