Managing Fraud in the Age of Omnichannel Banking

Financial Institutions (FIs) have undergone an evolution over the last few decades, transforming from providing services through brick-and-mortar locations to enabling transactions through full-on digital banking—including the emergence of open API banking, in which third parties access data from FIs to provide financial services. This demonstrates a true digital transformation of FIs, making them technology companies as much as financial institutions. And while the expansion into so many new channels has meant greater opportunities for customers to bank easily and conveniently, and for FIs to grow and prosper, it’s also revealed new vulnerabilities for fraudsters to exploit.

You may remember when fraud protection was as simple as presenting an ID at the teller window or entering a PIN at an ATM. Today, though, the proliferation of banking channels has led to a proliferation of fraud prevention strategies and solutions—to the point where it’s typical to have a different solution for every channel. That worked fine when there were just a couple of physical channels, but fraud management is much more of a challenge when banking channels have grown so much and so fast – in number and complexity.

It’s one thing to be on the lookout for fake IDs at a bank branch, but quite another to roll out and manage a half-dozen different sophisticated technology solutions to identify and stop digital fraud (not to mention the expertise to use them). And yet that’s exactly what’s been happening, with every FI managing each channel it operates as an independent (Read more...)

*** This is a Security Bloggers Network syndicated blog from RSA Blog authored by Nir Moatty. Read the original post at: http://www.rsa.com/en-us/blog/2018-11/managing-fraud-in-the-age-of-omnichannel-banking.html