Security Strategy Essential for Reducing Fraud

  • Security, Legislation

About two years ago, the federal banking regulators updated the guidelines around online-banking to help enhance and improve authentication. The FFIEC guidelines seemed to a hot topic over the past two years and now experts are evaluating if the updates have actually done what they were implemented for preventing fraud. And while they may have helped in some instances to detect account takeover sooner, some experts argue that the updates have not actually decreased losses from these incidents. Many banks have invested in other technology and mechanisms to become compliant with these guidelines and have found that while detection has improved, prevention has not. One of the reasons for why detection may have improved but true prevention has not, is due to new malware being developed everyday.

Online security experts are now advising banks to focus more on an integrated fraud prevention solution as opposed to the new guidelines. While this doesnt discredit the updates, it puts more of the responsibility back on the banks themselves. Relying solely on one solution or service to provide a full fraud prevention solution is neither realistic nor effective. Preventing online fraud takes a fully integrated strategy from the company itself and any of their security providers. Partnering with a third party fraud prevention provider that views their clients as partners as opposed to just customers will help to ensure that your solution is catered to your company.

One of the reasons why preventing online fraud is so difficult is because no two companies need the same solutions and tactics. Constantly reevaluating your companys security needs will help to ensure your strategy is strong and relevant.

[Contributed by EVS Marketing]