Fraud Prevention Risks for Banking Industry

  • Fraud Prevention, Security

45%... Forty-five percent of all personal computers are now predicted to be infected with software that is designed to steal money from your bank account, according to The Anti-Phishing Working Group. New groups of cyber gangs are going after unsuspecting victims such as average to small-sized businesses. You may think that large bank systems are the ones at the most risk, but according to Arthur Wong in his article Beware Cyber Crime Gangs: Is Your Banks Web Site Safe? hijackers are now targeting smaller business from PCs. These statistics may come as a shock to some. Reason being, there is no disclosure requirements for banks that face fraudulent activity due to ID verification issues. This causes some serious woes for company bank accounts especially since banks do not have the same obligations for company accounts as they do for personal accounts.

So what can you do to prevent these gangs from striking your business? Build firewalls, change passwords, use anti-virus software? Hijackers can surpass even these types of measures by injecting codes insides your browser. It goes without saying, there is no way to ensure 100% protection from fraud no matter what your fraud prevention measures are, but you can certainly increase your chances of protection.

As of Jan. 1, 2012 federal bank examiners started enforcing our good friend, the FFIEC rules for online bank security by implementing multiple layers of security and authentication. These layers of authentication can help companies protect themselves from the new threats posed by cyber gangs. EVSs Real-time transactions and knowledge-based authentication can add the extra layer that banks may need in order to outwit the codes that are breeching personal computers by stopping the thieves before reaching the users data.

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