How Your Financial Institution Can Prevent Fraud
by : Stan Jaslar
Bank fraud isn’t something only customers need to worry about. Financial institutions themselves need to be aware of the latest technology used by hackers and cyber criminals in order to find ways to stay abreast of that technology. Gone are the days of uneducated scammers getting lucky when breaking into a bank’s computer system. Today’s hackers are trained and sophisticated, and they use some of the world’s most advanced technology. Here are some ways your financial institution can prevent fraud.
Identify Every Individual Making a Transaction
According to Bankrate, the Federal Financial Institutions Examination Council recommends that all financial institutions implement a layered security system. One of the most important layers is to identify every individual making a transaction or attempting to access electronic banking services.
Automatic signature verification is a primary way to authenticate customers in real time. SQN Banking Systems offers a variety of signature
verification software options, including:
- Automated signature verification for many documents, particularly on-us checks
- Electronic signature capture
- Visual signature verification
Employ Advanced Cybersecurity
Identifying a threat and eliminating it before it does any damage is a highly effective way to ensure that your bank doesn’t experience fraud loss. While no bank is 100% secure regardless of the security measures they take, the employment of advanced cybersecurity can greatly reduce risk.
Q6Cyber, which has partnered with SQN, offers a wide variety of cybersecurity services, including managed security and threat intelligence. By monitoring the parts of the Internet where cyber criminals lurk and exchange information, such as the Darknet and the Deep Web, threats can be mitigated before they pose a problem for your bank.
Watch for Internal Fraud
In some cases, bank fraud is not committed by an outsider, but rather, a malicious insider. Careful hiring practices, background checks, and employing a checks-and-balances workflow can help spot individuals who have the potential to commit fraud against your financial institution. The goal is to eliminate the threat before any inside fraudulent transactions can take place.
At SQN Banking Systems, we understand that security is at the forefront of every successful bank and financial institution. We take a comprehensive approach to your institution’s security and can help you develop layered systems that protect your bank from fraud and the expensive losses that can come with it. Fraud prevention is key, because once it occurs, recovering from those losses are nearly impossible.
Ensure that your bank or financial institution is covered against the majority of real and cyber threats by contacting SQN today for more information. Simply fill out our online form and we will reach out to you to help you employ a variety of systems that ensures your bank is protected against many different types of fraud.