Bank fraud continues to be an expensive issue for banks and their customers. In 2016, $2.2 billion-worth of losses were related to bank fraud, up 16 percent from 2014. Those numbers are only expected to rise as new statistics come out for the most recent years.
Banks continue to become targets for different sorts of cybercrime and fraud and as these risks grow and evolve, so should banks’ efforts to be safeguarded. With this in mind, bank crime insurance has become even more important for banks to protect their own assets against fraud risks, just as much as it is important for banks to look to take steps to protect their customers’ information.
Here are some ways in which financial institutions can improve fraud detection and prevention in a constantly evolving digital landscape.
One way to better detect fraud is the use of data analysis software which can pinpoint fraud perfectly. Modern systems usually let fraud examiners analyze business data and check how up to snuff the internal system is operating. From here, transactions can be designated in denoting fraudulent activity or be elevated to risk of fraud. Singular fraud investigations can take place or repeated analyses for financial processes vulnerable to criminal activity.
Defending Against Fraud
Fraud detection is a solid first line of defense, but banks should also be able to defend against these risks when they appear. There should be tools and resources in place to provide defensive methods that are built around securing all portions of a bank. Employee accounts, for example, are always a major risk for banks when it comes to opening the door of fraud. Hackers find ways into banking systems through employee entry online and can end up pilfering as much company and client information as they want. Protecting against this kind of attack calls for better identity assurance, and this can be pursued through authentication tools including mobile device certificates and biometrics data.
Staying Present & Relative
Banks need to stay aware of the latest trends in fraud and cyber-attacks. This will help with banks when it comes to being able to evolve with the changing threats they face. The atmosphere of cyber risks facing financial businesses is growing and changing and becoming more sophisticated. Financial institutions can expect this malevolent development to continue on. Having a healthy fraud prevention strategy will help banks focus on the future and can be designed to adapt to the evolving environment of threat.
About Financial Guaranty Insurance Brokers
Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for entities of all types. 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.