Financial & Corporate Services
April 2014 Issue
Content is updated daily

Fraud Survey Reports Risk Management Systems Still Missing The Mark

A majority of banks and credit institutions plan on increasing the amount of anti-fraud resources they will use in the future, according to the 2012 “Faces of Fraud” national survey of businesses. However, only a minority of these businesses currently conform with anti-fraud guidelines established in 2011, and many have doubts that conformity will have a substantial impact in protecting them from fraud.

The survey, conducted by the Information Security Media Group and distributed to U.S. banks and credit unions of all sizes, shows that organizations are investing more money on anti-fraud education and new technologies. But they are still unclear as to what exactly is expected of them when it comes to anti-fraud guidelines, like those mandated by the federal Red Flags rule. Furthermore, many companies are undervaluing the need for anti-fraud awareness and education programs.

In order to best protect businesses and the public from fraud, banking and security experts recommend instituting a layered security approach that includes monitoring systems, staff training and fraud prevention education, increased controls over account activities, improved vendor management practices, and additional internal and external audits.

While many businesses are becoming more willing to invest money on fraud prevention, they will likely “miss the mark” if these investments fail to create an enterprise-level anti-fraud strategy, says Mike Urban of Fiserv, a company that provides security services to financial institutions.

Notaries who serve on the frontlines at banking and financial institutions can play a key role in a company’s overall anti-fraud strategy by adhering to established Notary Recommended Practices that ensure compliance and accuracy.

Key Points:

  • Survey illustrates companies’ willingness to expand anti-fraud efforts while also revealing an under-valuing of anti-fraud education
  • Security experts recommend an enterprise-wide anti-fraud strategy for companies
  • Notary and Notary Supervisor education programs can help companies in the fight against corporate-level fraud

Additional Resources:

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