New Fraud Threats Require New Protection

  • Fraud Prevention

Technology is constantly evolving which sparks consumer behavior to adjust accordingly. The newest trend in banking and payment processing is mobile banking. This may mean greater convenience for consumer and business account holders but it also creates a new threat in fraud prevention. Consumers are now entering in their personal information into their mobile phones in order to bank on-the-go. Customer information has the potential to be stored on their phone or go unprotected due to processing through a different platform. As Julie McNelley of the Aite Group estimated, around 44 million consumers will be using some means of mobile banking.

So what does this mean for changing your security measures? As mentioned in Cross-Checking Fraud Prevention for FFIEC Compliance the biggest concern is making sure security measures are implemented along all channels. This also involves monitoring any fraud prevention means that link online to mobile banking. Another important step is analyzing and preparing for all risks in offering mobile services before launching any type of platform. After surveying 24 global financial executives, 75% of them agree that mobile poses fraud risks. Mobile banking opens the opportunity for solely mobile and cross channel fraud.

Many mobile platforms are connected to online security and therefore, this is where many companies are starting. It is important to ensure that your online security strategy is implemented and most importantly, complete. Many businesses believe that ID verification will solve all the problems involving online fraud. This is a great starting point, but not the whole story. ID authentication is the key to making sure the information is coming from the true identity. Mobile banking also relies heavily on real time fraud prevention in order to deliver timely access to accounts. If you need more information in ID authentication or real-time transactions, contact EVS today.