Cross-Checking Fraud Prevention for FFIEC Compliance

  • Compliance, Identity Verification, Fraud Prevention

One of the biggest challenges, not just in fraud prevention but also in business all together, is being able to assess the big picture. Businesses tend to identify and address issues in silos, neglecting to see a holistic solution. This can cause gaps in protection against identity fraud and ID theft. These gaps can then cause a break down in complying with the new FFIEC regulations. When dealing with fraud prevention, many financial institutions forget that customers use multiple channels to access their information and therefore need id verification and authentication for each one these channels.

In an interview with George Tubin, he discusses the importance of looking at the entire relationship between company and fraud prevention. He states that institutions must look ahead by getting the entire organization involved in the effort against fraud. When dealing with different channels, organizations big and small alike must remember to cross check and make sure goals across each medium are consistent. Today with online banking, mobile payments, social payments, etc... businesses face that many more threats. If each channel is being addressed independently, they may not align. It is much like a fraud prevention supply chain, where companies must look at each link and how it affects the entire system.

To ensure complete FFIEC compliance, make sure to evaluate your entire fraud prevention strategy. That includes having the conversation with any third party vendors and your vendors vendor. Often times, companies have a very in-depth security process and dont even realize all parties involved. Cross-checking security across all channels used by the consumers will also help to improve overall compliance with the new FFIEC regulations.