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]
