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Fundtech Ltd., a market leader in global transaction banking solutions, today released a new white paper investigating the widespread cybercrime challenges faced by banks and how to fight them. The white paper includes insights from fraud and cybercrime experts from the FDIC, FBI, M&T Bank and NICE-Actimize.
Entitled Fraud: A 360° View, the white paper looks into the increasing occurrence of wire transfer fraud across banking channels. While cyber fraud losses from all sources have been on the decline since first peaking in 2006, online wire transfer and ACH fraud is still climbing with 2010 seeing $87.5 million in losses, according to David M. Nelson, Specialist in the FDICs Cyber Fraud and Financial Crime Section. Notably, this type of fraud is increasingly occurring across a variety of channels: from bank account infiltration (24%), via call center and fax communication (26%), as well as in-branch (15%). A recent Fundtech survey revealed that the majority (66%) of bankers believe that cybercrime will never get under control.
John Walp, Information Security Officer at M&T Bank, noted that a combination of people, process and technology is needed to fight fraud, particularly as cybercrime becomes increasingly profitable. Walp pointed to fraud prevention services such as ACH block and positive pay as well as isolated computer usage as examples of ways in which to reduce the threat of fraud. The Fundtech survey also showed that the vast majority (84%) of bankers believe that better detection tools and techniques would help the industry address fraud.
Part of the cybercrime problem is also lack of end user knowledge a Nice-Actimize study of 1,000 small businesses showed that only 18% said that they understood they had liability for cyber losses, revealing a severe lack of basic fraud knowledge. Ben Knieff, Director of Fraud Product Marketing at Actimize, points to how customer-centric fraud management should focus first on detection and examining transactions within the broader context of customer behavior.
The Fundtech white paper also describes key steps that need to be taken to best smooth the recovery process following an incident of cybercrime. Zachary Miller, Acting Deputy Assistant Director in the FBI Cyber Division, underscores the need for an incident response plan outlining policies and procedures for dealing with an incident.
"It is clear that security and fraud monitoring is a top concern for bankers," comments Ed Gainer, Senior Vice President of North American Cash Management. "Seventy-four percent of our clients think that their business clients would be willing to change financial institutions for better security. Account security is now a key competitive issue as well as a legal concern.
To download a complete copy of the Fundtech white paper on fraud, click: http://www.fundtech.com/Library.
Train your employees against cybercrime before it is too late; Take a free Internet phishing security test and find out how vulnerable your network really is
Stu Sjouwerman
KnowBe4
[/caption]Fundtech Ltd., a market leader in global transaction banking solutions, today released a new white paper investigating the widespread cybercrime challenges faced by banks and how to fight them. The white paper includes insights from fraud and cybercrime experts from the FDIC, FBI, M&T Bank and NICE-Actimize.
Entitled Fraud: A 360° View, the white paper looks into the increasing occurrence of wire transfer fraud across banking channels. While cyber fraud losses from all sources have been on the decline since first peaking in 2006, online wire transfer and ACH fraud is still climbing with 2010 seeing $87.5 million in losses, according to David M. Nelson, Specialist in the FDICs Cyber Fraud and Financial Crime Section. Notably, this type of fraud is increasingly occurring across a variety of channels: from bank account infiltration (24%), via call center and fax communication (26%), as well as in-branch (15%). A recent Fundtech survey revealed that the majority (66%) of bankers believe that cybercrime will never get under control.
John Walp, Information Security Officer at M&T Bank, noted that a combination of people, process and technology is needed to fight fraud, particularly as cybercrime becomes increasingly profitable. Walp pointed to fraud prevention services such as ACH block and positive pay as well as isolated computer usage as examples of ways in which to reduce the threat of fraud. The Fundtech survey also showed that the vast majority (84%) of bankers believe that better detection tools and techniques would help the industry address fraud.
Part of the cybercrime problem is also lack of end user knowledge a Nice-Actimize study of 1,000 small businesses showed that only 18% said that they understood they had liability for cyber losses, revealing a severe lack of basic fraud knowledge. Ben Knieff, Director of Fraud Product Marketing at Actimize, points to how customer-centric fraud management should focus first on detection and examining transactions within the broader context of customer behavior.
The Fundtech white paper also describes key steps that need to be taken to best smooth the recovery process following an incident of cybercrime. Zachary Miller, Acting Deputy Assistant Director in the FBI Cyber Division, underscores the need for an incident response plan outlining policies and procedures for dealing with an incident.
"It is clear that security and fraud monitoring is a top concern for bankers," comments Ed Gainer, Senior Vice President of North American Cash Management. "Seventy-four percent of our clients think that their business clients would be willing to change financial institutions for better security. Account security is now a key competitive issue as well as a legal concern.
To download a complete copy of the Fundtech white paper on fraud, click: http://www.fundtech.com/Library.
Train your employees against cybercrime before it is too late; Take a free Internet phishing security test and find out how vulnerable your network really is
Stu Sjouwerman
KnowBe4
