Financial Institutions and the Fight Against Fraud
By Matt Tengwall
Posted in Customer Engagement
The risk of fraud often tops the lists of threats concerning the leaders of financial institutions today. Though robberies and physical security hazards were once their biggest worry, the amount that banks can lose annually stemming from acts of fraud has forced them to significantly shift their focus to include both brick-and-mortar and cyber protection measures.
It's no secret that the threat of fraud is only getting worse as cybercriminals become more sophisticated and breaches more severe. Therefore, it's even more critical for financial organizations to spend time and effort determining the best methods and solutions to mitigate risk and stay ahead of the game.
Innovative technology is the place to start, allowing financial institutions to work toward comprehensive physical and cyber protection for customers, assets and the brand. "Surveillance in concert with data integration is the single best way to combat fraud," said Nathan Derr, SVP Sales, Wittenbach.
These kinds of solutions can work to increase efficiencies for financial organizations--particularly smaller banks and those with limited resources--by providing proactive search functions and alerts when certain situations occur related to triggers. And when integrated with additional systems, such as access control and intrusion, banks can investigate incidents more in depth by easily identifying relevant video around the occasion.
But the data analytics incorporation is the magic key.
"You have all this captured video, which by itself is essentially useless," said Derr. Searching through endless amounts of information is both time-consuming and oftentimes aimless, so the ability to push out pieces that are flagged as relevant or urgent is exceptionally valuable in identifying fraud.
Though these solutions are designed to provide security, the safety of the devices themselves must also be considered. Minimizing the opportunity for fraudulent activity involves ensuring effective cybersecurity practices are followed--prohibiting criminals from accessing sensitive information.
Network intrusion and theft of valuable customer data lead directly to fraud, requiring that efficient management policies are in place to avoid breaches.
"Banking customers are now hyperaware of the threat of a cyber attack and the possibility of their information being left exposed to a virus," Derr said. Financial institutions and banks must ensure compliance regulations are met with current firmware--best practices such as password protecting cameras, encryption and patch management should also be deployed.
Technology solutions such as Verint's Op-Center, which allows administrators to quickly and easily change the passwords across all Verint equipment, make following these policies easier and more cost-effective.
Tackling the threat of fraud begins with the use of innovative security solutions that constantly work behind the scenes to recognize anomalies, facilitate immediate response and contribute to comprehensive cybersecurity. And it ends with collaboration across the industry: "Open platforms are crucial so that it's easy for both stakeholders and systems to talk to one another and connect, ultimately aiming to reach a common goal," Derr said.
Matt and Nathan, thanks for your insight and leadership!
Want to stay up to date with all the latest insights?
Subscribe to our weekly or monthly digests of all the latest insights and articles from from Verint