It’s not easy to be stuck in the middle, a position that banks inhabit as they process the financial activities of others. Most transactions passing through their systems are honest, but some are illicit, often involving money laundering. Are banks innocent victims of criminals who exploit their processes or knowing participants in crimes? The case has not been tried, but public sentiment leans toward the latter. Can banks come clean?
Banks make a big mistake when they leave the customer out of the fraud equation; prompt communication with a client when a suspicious transaction is detected can result in much swifter resolution of the issue as well as better relations with the customer. After all, banks and their customers are on the same page when it comes to thwarting financial fraudsters.
It may come as a surprise that some investors prefer their bank managers to be honest, even if this honesty hinders maximum returns. Research indicates that truthfulness in financial dealings may actually pay more dividends than deceptive practices, thus offering banks the opportunity to act as trustworthy intermediaries and in the long run boost their overall success.
This year marks 50 years since the introduction of the first ATM, which was put into use by Barclays in its Enfield branch in north London on 27th June 1967. Technology has come a long way since this early version of the self-service systems we use today but one thing hasn’t changed – the need for robust security solutions is critical for ATMs around the world.
In any battle, being adequately armed is crucial to winning. Banks, faced with an onslaught from fraudsters intent on breaking into customer accounts, have no choice but to stay one step ahead with the latest in innovative fraud-protection financial technology; this is essential not only to keep losses down but to retain customer trust.
In the past few months we have seen a growing number of banks turn to voice recognition technology in an attempt to provide a better customer experience as well as protection against fraudulent activity.
Financial services organisations remain a firm favourite for cyber criminals. Industry reports suggest that hackers target financial service firms 300% more often than any other sector – and this situation is unlikely to change.