Keeping up with the Fraudsters: A Strategic Review of Your Fraud Detection and Prevention Systems

摘要

Fraud detection and prevention are an ever-present challenge for financial institutions (FIs). Most banks have a fraud strategy in place; however, as the sophistication of fraudsters grows, along with the demand for expanded services which open the FI's systems to external vulnerabilities, the risks continue to increase. But it is not only external vulnerabilities that FIs need to be concerned about, risks abound internally as well. Having a comprehensive strategy to monitor and detect threats is not only critical, it's imperative. Employing a strategy that is designed as a proactive approach and leverages concurrent investments in compliance can pay off handsomely, usually demonstrating between 4-1 and 8-1 proven return on investment characteristics in the first year. However, this requires clear vision and planning to ensure adequate program effectiveness.