It feels like we live in a world of constant digital threats—one day you’ll read about a multi-million dollar loss from a global bank and hear the next about the billions of personal records that were leaked.
As an employee or decision-maker at a bank, you may feel overwhelmed by the trust your customers have placed in your institution. It’s your job to make sure that money is handled properly and securely.
The good news? There are ways to proactively protect yourself, your bank, and its customers from potential bank frauds and scams.
Who Are the Targets of Bank Fraud?
You’d think that the end users would be the main target for cybercriminals—get past the online banking security and steal your customers’ money. But, hackers have a much different target for fraud: the gatekeepers at banks.
With you, they can access so much more than just one bank account. They can access customer data, passwords, and other confidential information that could give them easier access to all of your customers or people that trust your institution.
What Are the 5 Main Types of Bank Fraud?
Criminals are constantly coming up with new ways to steal money or information, which is why it’s so important to beef up your online bank security. Here are the 5 most common types of banking fraud your bank needs to be aware of:
Sending any sort of personal information online is risky but business demands it nowadays. Financial institutions are careful to warn their customers about the dangers of wire fraud but employees need to be better at detecting and preventing it.
When personal records are leaked, it’s easy for cybercriminals to find that information and try to obtain a loan with another person’s identity. Loan fraud has been growing as more records are linked online and the U.S. experiences a time of economic uncertainty.
Forged documents are often used to apply for loans, mortgages, and other forms of credit. The scam involves using someone else’s identity to get access to funds or accounts.
Billions of phishing and spam emails are sent every day and 35% of them are impersonating financial institutions. These emails often have links or downloadable files that contain viruses and other malware, which can easily be used to steal someone’s identity or access their bank accounts.
Traditional Identity Theft
Traditional identity theft is still one of the most common types of banking fraud. It involves stealing someone’s personal information, such as Social Security numbers or credit card numbers, and using it to open accounts or make purchases without their authorization. Experts believe that there is a new victim of identity theft every 22 seconds.
4 Ways to Detect and Avoid Bank Fraud
As a bank, you are a major target for fraud and theft. Here’s how you can improve your online banking security:
Enable Multi-Factor Authentication (MFA)
One of the best ways to protect against bank fraud is by stopping it at the source with MFA. Instead of trying to solve the problem after a hacker has already made their way in, MFA helps you prevent them from getting in the first place.
As a bank employee—or gatekeeper to the organization—you’re the target. By hacking your accounts, a cybercriminal gets access to your reputation and thus, your customers’ trust. By enabling MFA, you can prevent malicious actors from using your email or other applications to manipulate customers.
Conduct Regular Risk Assessments
Bank fraud can come from the inside and outside, so it’s important to conduct regular risk assessments to identify any potential vulnerabilities or threats. You should also update your security policies and procedures regularly to make sure they’re up-to-date with the latest financial regulations.
In the past, financial institutions would run an assessment every year or so. But as threats increase, you should be testing your system a lot more frequently. By partnering with a managed service provider, you can access the latest technology at a lower price.
Train Staff On Fraud Prevention
Your staff should know the basics of fraud prevention, from spotting phishing emails to responding to suspicious activity. Regular training sessions can help ensure your employees are aware of current threats and how to avoid them.
Use Advanced Security Software
Finally, you should use advanced security software that can detect malicious attempts at bank fraud. This includes malware, ransomware, phishing attempts, and more. By using a comprehensive security suite, you can protect your bank from any potential cyber attack.
Securing your bank is key to protecting your customers’ trust. By following these steps and incorporating them into your online banking security strategy, you can reduce the risk of fraud significantly.
Let RESULTS Technology Help!
At RESULTS Technology, we understand the importance of having a secure banking system. Our team of experts can help you implement comprehensive security measures to protect your bank from fraud and theft.
Schedule a consultation with our team to find out how we can improve your bank security.