In the 2013
Faces of Fraud survey, it was found that even with financial institutions
increasing their fraud prevention efforts its still not enough to stop fraudsters. Financial
institutions and banks make big investments in fraud
prevention and stronger online security, but accounts are still being
compromised. Instances like credit card, check, ACH and wire fraud are of main
concern when it comes to threats. Despite the investments made for security
control, these preventative measures arent stopping threats and attacks.
The FFIEC updated their authentication
guide, which recommends dual-customer authorization, fraud detection and
monitoring, enhanced customer education and IP reputation-based tools. But
nearly half who took the survey say those controls have not reduced the number
of account takeover incidents in the past 12 months. Sixty-five percent of them
said that customers resist the controls theyve implemented, making it hard to
secure their accounts and data.
The majority of institutions who were surveyed responded
that financial losses to fraud have either increased or remained steady over
the past year. Financial Institutions need to make it a point to educate their
customers about fraud. Layered
security is no longer an option for customers to decide upon. Banks need to
implement fraud
prevention solutions beyond the FFIEC guidelines. By implementing drivers
license verification, fraud
scoring, high-risk
alerts and more, financial institutions will be able to increase fraud prevention services and decrease attacks.
[Contributed by EVS Marketing]
