In this article series about preventing bank robberies, we have covered some important preventative measures including focusing on customer service and educating your bankers on the red flags to be aware of. In this final installment, we will explore how the following processes contribute to crime and robberies in banks, and how to mitigate these issues. Even more importantly, protect your operation with a Crime Insurance policy.
Mistake #1: Having a superficial approach to crime.
Using preventative systems in isolation is not a proactive approach to crime deterrence. Whether due to organizational silos, the lack of a long-term channel strategy, or a rush to protect the institution against emerging threats, different solutions are cobbled together that offer a superficial yet functionally inadequate layer of protection against financial crime. Sophisticated criminals exploit the gaps between these independently operated systems, often leveraging weakness in one channel to gain access to another. As a result of this situation, financial institutions are increasingly moving towards a more consolidated approach to financial crime prevention and should match their strategy to their technology solutions and buying decisions, explains Banking Tech.
Learning to connect the dots can identify and pinpoint fraudulent behavior and connect the dots to understand exactly how your institution is at risk.
Mistake #2: Too little too late.
After a robbery or severe crime has taken place, it’s too late. Being reactive to a negative situation is not the same as being proactive in preventing them from happening in the first place.
Mistake #3: Making only cost-driven protective measures.
As regulators have increased scrutiny on the financial industry, the number and amount of fines have grown precipitously, and financial services organizations must rethink the value of adequate protection and the true cost of financial crime prevention programs. No longer satisfied with merely “checking the box,” regulators are looking to financial institutions to do what is necessary rather than what has been deemed acceptable in the past..
Mistake #4: Failing to make changes.
With new advents in security, detection systems, and technology, your bank’s processes should be quick to adapt. Without the necessary changes, these advancements are essentially moot. Crime prevention benchmarks and expectations have increased tenfold with the innovation of new technologies, and bank operators, shareholders and management are held to a higher standard.
About FGIB
Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for financial entities, in addition to providing crime insurance and general business insurance products to a number of firms across the United States. To receive timely, personalized service from a knowledgeable and experienced staff, call us today at (626) 793-3330 to speak with one of our professionals.