As financial institutions gain
more money to put towards fraud prevention measures, they need to take caution
to ensure that these funds are put to good use. As discussed in the blog Increased
Funding for Fraud Prevention: Whats the Allocation? many banks have
already planned out how they are going to distribute the increased budget.
Experts such as Shirley
Inscoe believe that banks are not allocating the new budgets in a way that
will survive the long term goal. Many companies are putting money towards
resources that will help them comply with the FFIEC guidelines, but do no
support ongoing security. Even though this helps with meeting standards, it
does not enforce practices that make security a priority. Banks may only be
investing in solutions that solve short-term fraud
prevention goals because they feel overwhelmed or too busy to look into a
deeper strategy.
It is important for organizations
to take the time to think about their security measures as a long-term priority
that affects all stakeholders. They need to ask themselves is this going to
help my company in 5 years? 10? before investing in a compulsive solution that
may only help prevent fraud for a few months or years. Michael Wyffels stresses
the importance of fraud
detection over the obsession of fancy technology. Part of preventing fraud
is detecting it. Both experts favor the use third party and out-of-brand vendors
that provide ID
verification and authentication. Wyffels believes third party security
processors help to detect cross channel fraud and Inscoe urges banks to find
vendors that can help detect multiple types of fraud before it affects multiple
channels. ID verification and authentication companies help prevent fraud by
detecting it early on. To help strengthen long-term security measures, make
sure your organization has a strong relationship with an ID
verification and authentication company that will help make your security
their priority.
[Contributed by: EVS Marketing]
