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Proactive Fraud Risk Detection

Early Warning System for
Proactive Fraud Risk Detection

Detect Emerging Risks Before They Become Major Losses

Fraud and credit deterioration rarely happen without warning. The challenge is identifying the right signals early, examining them promptly and taking corrective action before the exposure turns into a fraud or financial loss.

The FraudSentinel360 Early Warning System (EWS) continuously monitors customer, loan, collateral, transaction, financial, digital and employee-related data to identify unusual activities and emerging risks. It converts scattered data signals into prioritised, actionable alerts—helping banks move from reactive fraud investigation to proactive fraud risk management.

95+ Configurable EWS Checks Automated Alert Generation Risk-Based Prioritisation Integrated Investigation Workflow
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Unified Platform

A Comprehensive Early Warning
System for Banks

FraudSentinel360 brings together rule-based monitoring, data analytics, market intelligence and investigation workflows on a unified platform.

The EWS module can monitor:

  • Loan account conduct and repayment behaviour
  • Post-disbursement documentation
  • Collateral, valuation and security creation
  • Working-capital utilisation
  • Borrower financial performance
  • GST, tax and statutory compliance
  • Fund diversion and evergreening
  • Trade-finance transactions
  • Customer and counterparty relationships
  • Digital banking and account-takeover indicators
  • DSA, branch, valuer and service-provider performance
  • Employee overrides and suspicious access patterns
  • Adverse media, litigation and regulatory developments

Each indicator can be configured according to the bank’s products, portfolios, customer segments, geography, materiality thresholds and risk appetite.

EWS Alert Lifecycle

From Data Signal to
Investigated Outcome

FraudSentinel360 supports the complete EWS alert lifecycle:

1
Data Integration

The platform receives relevant data from the bank’s internal systems and approved external sources. These may include:

Core Banking System Loan Origination and Loan Management Systems Customer and KYC systems Collection systems Trade-finance applications Document Management System CERSAI and MCA records Credit bureaus GST and tax information Bank statements HRMS and access-management systems SIEM and digital-channel logs RERA, court and public records Market-intelligence and adverse-media sources
2
Automated EWS Monitoring

Configurable rules examine the available data at the required frequency—real-time, daily, weekly, monthly or event-driven.

3
Alert Generation

When the defined conditions are met, the platform generates an alert with:

Customer and account information EWS check triggered Triggering data and transaction details Alert date and severity Supporting evidence Related accounts, parties or earlier alerts Recommended initial action
4
Risk-Based Prioritisation

Alerts can be classified as Low, Medium, High or Critical based on:

Financial exposure Nature of the indicator Number of rules triggered Customer risk category Transaction value Previous alert history Linkage with known fraud cases Probability and potential impact
5
Alert Examination

The alert is assigned to an authorised officer for examination. The reviewer can obtain information, record observations, upload evidence and communicate with relevant departments through the platform.

6
Escalation and Investigation

Validated alerts may be escalated for detailed investigation or assessment under the bank’s Red-Flagged Account framework.

7
Closure and Continuous Improvement

Every alert is closed with a documented outcome, such as:

False positive Operational exception Credit-monitoring concern Suspicious activity requiring enhanced monitoring Confirmed policy violation Escalation for investigation RFA assessment Fraud identified

The result can be used for threshold calibration, rule refinement and future risk detection.

EWS Check Library

95+ Configurable Early Warning Checks

The FraudSentinel360 EWS library includes indicators across major risk categories.

Credit and Repayment Behaviour
Monitor persistent SMA behaviour, early EMI defaults, repeated restructuring requests, declining repayment capacity and broken payment commitments.
Collateral and Security
Identify charge-creation delays, duplicate collateral, valuation outliers, title disputes, insurance lapses and adverse site-inspection findings.
Financial Performance
Detect unusual movements in revenue, inventory, receivables, current assets, borrowings, cash flow, DSCR and related-party transactions.
Fund Diversion and Evergreening
Identify repayments funded through other lenders, rapid diversion of disbursed funds, round-tripping, heavy cash withdrawals and sales not routed through the lender.
Trade Finance
Monitor overdue foreign bills, frequent LC devolvement, BG invocation, onerous clauses and trade transactions without genuine underlying activity.
Identity and Document Fraud
Detect KYC mismatches, unverifiable business information, duplicate documents, reused images, multiple loans against the same identity and suspicious digital linkages.
Transaction and Digital Fraud
Identify dormant-account activation, unusual transaction velocity, new-beneficiary transfers, account takeover, abnormal devices and mule-account networks.
Channel and Service-Provider Risk
Compare the performance of branches, DSAs, valuers, lawyers and field-investigation agencies to identify concentrations and unusual fraud incidence.
Employee and Internal Fraud
Detect unauthorised overrides, maker-checker exceptions, suspicious account access and undisclosed employee linkages with customers or vendors.
Market Intelligence and Compliance
Monitor regulatory action, adverse media, litigation, auditor resignation, statutory defaults and project-approval lapses.
Explore All EWS Checks
No Hard-Coded Logic

Rule Builder—Configure Without
Depending on Hard-Coded Logic

Every bank has different products, customers, data availability and risk appetite. FraudSentinel360 therefore allows authorised users to configure EWS rules instead of relying only on a fixed rule set.

Banks can define:

  • Rule conditions and thresholds
  • Applicable product and portfolio
  • Customer or borrower segment
  • Monitoring period
  • Alert frequency
  • Risk severity
  • Alert ownership
  • Investigation turnaround time
  • Escalation hierarchy
  • Required evidence
  • Exclusion and suppression conditions
  • Rule validity period
  • Maker-checker approval

Thresholds can be revised based on historical performance, alert volumes, false-positive rates and identified fraud cases.

Beyond Isolated Signals

Composite Risk Scoring

One isolated signal may not establish fraud. However, multiple related signals can indicate significantly higher risk.

For example, a borrower may trigger:

1GST and revenue mismatch
+A major reduction in promoter holding
+Large transfers to related parties
+Delayed statutory payments
+Auditor resignation
Higher Composite Risk Score — Prioritised for Immediate Examination

FraudSentinel360 can combine these signals to generate a higher composite risk score and prioritise the case for immediate examination. This helps investigation teams focus first on alerts with the greatest potential impact.

Uncover Hidden Connections

Network and Link Analysis

The platform can identify common relationships across customers, employees, vendors, beneficiaries and service providers.

Linkages may be detected through:

  • PAN or GSTIN
  • Mobile number
  • Email address
  • Residential or business address
  • Bank account
  • UPI ID
  • Device or IP address
  • Director or beneficial owner
  • Property identifier
  • Valuer, lawyer or DSA
  • Common beneficiary

This can help uncover organised fraud rings, mule-account networks, employee collusion, related-party fund diversion and repeated document reuse.

One Connected Platform

Integrated EWS and
Case Management

FraudSentinel360 does more than generate alerts. Every alert can be converted into an investigation case within the same platform.

The integrated workflow supports:

  • Alert allocation
  • Preliminary examination
  • Evidence collection
  • Information requests
  • Investigation planning
  • Activity and case timelines
  • Findings and observations
  • Internal collaboration
  • Committee review
  • Show-cause notices
  • RFA assessment
  • Fraud classification
  • Regulatory reporting
  • Corrective and preventive actions
  • Case closure
  • Complete audit trail

There is no need to manage alerts through disconnected spreadsheets, emails and separate investigation systems.

Management Intelligence

Dashboards and
Management Intelligence

Role-based dashboards provide a consolidated view of the bank’s emerging fraud and credit risks.

Indicative dashboards include:

  • Alerts generated, pending and closed
  • Alerts by severity and ageing
  • Product-wise and portfolio-wise trends
  • Branch and geography risk heat maps
  • Borrowers triggering multiple indicators
  • High-exposure alerts
  • Alert-to-investigation conversion
  • Alert-to-fraud conversion
  • False-positive rates
  • Investigator workload
  • Examination turnaround time
  • Overdue alerts and escalations
  • DSA and service-provider performance
  • Recurring fraud patterns
  • Root-cause analysis
  • Preventive actions and recoveries

The platform’s configurable dashboard and report builders allow banks to create additional management reports without depending on fixed formats.

Governance

Supporting RBI-Aligned EWS
and RFA Governance

FraudSentinel360 helps banks operationalise their Board-approved Early Warning Signals and Red-Flagged Account framework through:

  • Centralised inventory of approved EWS indicators
  • Product- and portfolio-specific rule configuration
  • Defined examination timelines
  • Automated ownership and escalation
  • Evidence-based alert disposition
  • RFA assessment workflow
  • Committee review and approval
  • Complete maker-checker controls
  • Regulatory reporting support
  • Data Analytics and Market Intelligence dashboards
  • Rule-performance monitoring
  • Periodic review and recalibration
  • Complete, time-stamped audit trail
The platform supports governance and execution; each bank must configure and approve its indicators, thresholds and workflows in accordance with its own policy and applicable regulatory requirements.
Why FraudSentinel360 EWS

Key Benefits

Detect Risks Earlier
Identify unusual behaviour before it develops into a major fraud, NPA or financial loss.
Reduce Manual Monitoring
Automate data-driven checks that are otherwise performed through spreadsheets and fragmented reports.
Prioritise High-Risk Alerts
Use severity, exposure and composite risk scoring to focus resources on the most important cases.
Improve Investigation Turnaround Time
Automatically allocate alerts, track ageing and escalate delays.
Strengthen Regulatory Governance
Maintain consistent evidence, decisions, approvals and audit trails across the EWS and RFA lifecycle.
Identify Connected Fraud
Discover hidden relationships between borrowers, employees, vendors, beneficiaries and intermediaries.
Continuously Improve Detection
Measure fraud-hit and false-positive rates and recalibrate rules using actual outcomes.
Gain Enterprise-Wide Visibility
Provide senior management and committees with consolidated risk dashboards across branches, products and portfolios.
Deployment Options

Flexible Deployment

FraudSentinel360 can be deployed based on the bank’s technology and security requirements:

  • On-premises deployment
  • Private-cloud deployment
  • Bank-approved cloud environment
  • API-based or batch-file integration
  • Role-based access control
  • Maker-checker authorisation
  • Encryption and comprehensive audit logging
  • Configurable data-retention controls

Implementation can be planned in phases based on data availability and priority portfolios.

Move from Reactive Investigation to Proactive Fraud Prevention

FraudSentinel360 gives banks the technology, workflows and intelligence required to identify emerging risk, investigate alerts promptly and take action before exposure becomes a serious loss.

Identify Early. Investigate Faster. Prevent Losses.

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