As financial institutions and banks continue to expand their operations exponentially, there is a lot of attention being turned to technological advancements. Mobile banking is yet another invention which has caught the attention of the masses. However, this has not deterred fraudsters from taking notice of the burgeoning use of mobile based banking. Identity fraud has become the new risk to reckon with in this new age era.
With the onset of mobile banking, convenience and accessibility has slowly and steadily given way to fraudsters, by providing them with excellent opportunities to siphon money out of bank accounts and personal accounts. Considering the plethora of banking options given to customers, fraudsters are taking sufficient liberties to trick people into their scams, and extract money through unscrupulous means.
In order to avoid such circumstances, and enhance fraud prevention and assist fraud reduction, banks and financial institutions need to consider some practical solutions, which will not only be feasible, but also bring succinct, yet measureable results for the customers and the banks alike.
Let’s look at some of the options which can be implemented to reduce fraud in the financial domain:
1) Multi-factor authentication: It’s very important for banks to have a robust multi-factor authentication procedure in place, in order to ensure maximum security for their customers. This authentication procedure kicks in at the time of account registration and can go a long way in helping banks and customers’ stay awry of fraudsters. Know your customer or KYC is one such authentication procedure which can prove to be extremely beneficial in on-boarding the right customers.
2) Email and text alerts for customers: The golden rule of mobile banking is that your customers should always be aware of what’s happening in their accounts. Mobile banking is heavily influenced by technology; even though its convenience available on your phone, it’s important to always give timely updates to the customers via email and text messages. Through these updates, customers can constantly be made aware of any fraudulent activities, and charges which might be levied on their accounts. Mobile IDs should be kept private, and customers should be educated on how to keep their accounts safe and secure.
3) Monitor online activity to perform behavioral analysis: Mobile banking can be rigged with different mechanisms to get customers top notch protection from fraudsters. Through rigorous monitoring, the login time, location, IP address etc. can be locked, which helps prevent any fraudsters and cyber criminals from logging in unscrupulously. If the location or any other details are not matching with the usual login details, there are chances that an unauthorized person is trying to access the customer’s bank details. This can further trigger a series of additional lock-in checks, aimed at freezing the unauthorized access.
4) Educate customers and employees about fraudulent activities: Cyber criminals can go to any extent to gain access into customers’ mobile accounts. No matter if you are a bank or a financial institution, it is one’s first and foremost duty to educate customers’ and employees to recognize fraudulent activities, which might be acting up on their personal and commercial accounts. Any unauthorized attempts to login should be reported to the issuing bank/institution immediately, so that appropriate preventive measures can be taken to avoid any money laundering attempts. Mobile identity is as important as any other form of identity, and breaches should be taken seriously.
5) Avoid unethical malware pile up: Malware, as system residue, can pile up over a period of time, and give hackers a glorious opportunity to monitor the owner’s actions remotely. By tapping into a phone’s malware, hackers can effectively monitor keystrokes as well as capture emails and screens and use them to their own advantage. Scanning and removing malware has become an integral part of every bank’s routine fraud prevention activities.
6) Be secure, and login securely: When one has to login into the bank’s site over the Internet, it’s always advisable to do so using a secure connection. A secure connection means using the HTTPS protocol, which helps prevent any unauthorized usage of the base data. Cyber criminals use a series of methods to hack into mobile banking accounts, and these attacks can be extremely vicious, if not curbed in the right manner.
Mobile banking has become one of the most lucrative options for customers these days. Apart from convenience, they offer the customers plenty of options needed for effectively managing their accounts in the right manner. With the right tools in place, everything becomes easier and more doable, right from fraud prevention to customer satisfaction, all under one app.
Since 1985, Melissa has specialized in global intelligence solutions to help organizations unlock accurate data for a more compelling customer view. For more information on eKYC and AML please visit www.Melissa.com.