The use of technology for financial transactions has created new threats in the area of bank fraud. In addition to multiple security layers that utilize technology, financial institutions must still rely on physical steps in-house if they are going to be successful in preventing bank fraud. Both large and small businesses should take action to prevent account takeovers.
1. Rely on Multi-factor Authentication
Use a multi-layered security structure to reduce unlawful access. This isn’t a fail-safe, but it is a good start in avoiding compromising access to financial data. Use software but follow up on alerts with phone calls to clients to verify suspicious activity.
2. Install Transaction Monitoring
If a transaction is under $10,000, it doesn’t usually draw suspicion. However, fraudsters know this and will keep transactions below this mark. Setting up daily limits for consumers, along with file and batch limits, can increase the likelihood of spotting activity that is out of the ordinary.
3. Daily Reconcile Accounts
Don’t let the reconcilement of transactions and accounts build up. Conduct a daily system to find transactions that weren’t made. This increases the opportunities to conduct a reversal or recall of transactions and recover the money.
Fraud awareness training will make sure all employees are on the same page concerning the liability of fraud. However, take preventative steps to further reduce your risks.