Is your security fit for the omnichannel environment?

By : Dena Hamilton

May 16, 2017 12:00 PM

Different banks have different goals and different benchmarks for success, but one objective that should unite all financial institutions (FIs) is protecting their customers from fraud. However, as the banking industry becomes increasingly complex and consumers have more ways to access and manage their finances, the job of keeping people's money and details safe gets harder.


The good news is that financial services providers today have access to a wide range of security solutions and tools to help you stay one step ahead of the fraudsters.


Threats on all fronts
Consumers today benefit from unprecedented choice in various areas of their lives. In the retail banking industry, omnichannel accessibility means people can stick with tried-and-tested methods of managing their money, like using an ATM or going into a branch, or embrace the latest innovations in online and mobile banking.


All this progress is hugely exciting for customers and banks alike, but it also attracts the attention of fraudsters. As a financial services provider, you have the responsibility to ensure that all channels - whether established or emerging - through which you engage with your customers meet certain security standards.


A recent article in InfoSecurity magazine noted that the ATM remains a "weak link" as far as security is concerned for many banks, partly because this channel can be targeted by both physical and software-based attacks. Financially, this is a big issue for card issuers and ATM operators, as the likelihood is that they will foot the bill for ATM fraud.


UK consumer group Which? has warned that bank fraud is booming, with 2014-15 losses rising by 64 per cent to £133.5 million for online banking and by 28 per cent to £323.3 million for telephone banking. It highlighted some of the actions FIs are taking to strengthen security, such as two-factor authentication for online banking logins. This combines something the customer knows, like a password or ID number, with something they have, such as a card reader or phone to receive a single-use passcode.


Alex Neill of Which? said: "Online banking is increasingly part of our daily lives and at the same time online scams are becoming more sophisticated. People can only do so much to protect themselves from fraud - it's time for banks to shoulder more of the responsibility and introduce extra protections to safeguard their customers."


Stepping up security
One bank that is looking into new ways of protecting its customers is Lloyds, which recently unveiled its new Phoneprinting technology. Developed by Pindrop, the system works by analyzing 147 call features - such as location, background noise and number history - to create a unique 'audio fingerprint'. This is used to warn of any unusual activity and identify criminal callers.


Lloyds said the technology has helped to prevent millions of dollars of fraud in the US and has also contributed to reduced call times and a better customer experience. Martin Dodd, the banking group's telephony managing director, said the aim of this innovation is to strengthen "multi-layered defenses" against fraud.


There are clear benefits to be gained from using intelligent, multifaceted security solutions that can be deployed across various channels, systems and currencies, helping your business to detect fraud and stop criminals in their tracks. Some platforms harness the power of machine learning and analytics to deliver even better protection.


With measures such as these in place, you can feel confident that your business and your customers will benefit from the best possible security as the industry continues to expand and evolve.

Dena Hamilton

GM/Director, Enterprise Fraud & Security Software Solutions

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Dena specializes in fraud, risk, compliance and security with over 35 years in the financial services space. Her focus is in the development and deployment of enterprise financial crime solutions optimized in prevention, detection and back office efficiency.