Pub. 5 2016 Issue 6

August 2016 21 l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s Other preventive measures to consider include requiring individual, international or first-time transfers to occur in person, as well as implementing digital security tokens. Create Transfer Procedures Fraud can occur when a flaw is exposed in the bank’s protection process. To help avoid breakdowns, banks should have a formal process for transferring funds and train employees to follow the procedures. For example, if the process requires a teller to call the number listed in the account after a transfer is initiated, a teller should always place the phone call. Often criminals will call immediately after placing a transfer request to “make sure the transfer went through.” Speaking to the person executing the transfer should not replace calling the number listed in the account. Know Your Customer In the age of digital banking, knowing the customer is becoming more important than ever. Does this customer normally transfer money? How big are the transfers? Where does the money usually end up – somewhere local or international? How do they typically initiate a transaction, and who is the originator? Is the origination account the one that is normally used for transfers? Knowing the answers to these questions could help alert bank employees to potential fraud in progress. Partner with Your Customer on Protecting Sensitive Data While most banks have strong internal controls and procedures in place, cyber thieves realize that many bank customers aren’t as advanced in protecting their private information. Criminals can easily build a complete personal profile of someone using social networks and internet searches. Therefore, it is incredibly important to remind customers to protect sensitive data, such as social security numbers and passwords. Encourage customers to keep digital information safe by using protected wireless networks, security software and creating strong passwords. Establish protocols for safe email practices that include avoiding sending account information via email. If a customer email system is hacked, the hacker will have access to email records that may have past transfer information which gives them a "template" for how to conduct the fraudulent transfer. Wire transfer fraud will likely continue to be a preferred method of theft, at least until the next scheme comes along. While preventing fraud is a growing challenge for banks, taking the proper precautions and educating staff can help protect both the bank and its customers. Craig M. Collins is President at OneBeacon Financial Services. He has more than 30 years of experience in the financial institution industry. Collins can be reached at ccollins@onebeacon.com. To learn more about OneBeacon Financial Services, visit www.onebeaconfs.com . Reach your target audience a ordably. advertise get results KRIS MONTIONE Advertising Sales 727.475.9827 or 855.747.4003 kris@thenewslinkgroup.com