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KPMG’s Global Banking Fraud Survey, which was conducted by the multinational accounting firm between November 2018 and February 2019, finds that banks are still reactive towards fraud and not investing enough on fraud risk management. The total cost of fraud risk management was not monitored by 52% of banks surveyed.
According to KPMG Malaysia Head of Forensics, Tan Kim Chuan, this makes it an outlier within bank operations, and reduced visibility to the board and risk committees who make key budget, resourcing and investment decisions.
The survey also found that 61% of the banks surveyed reported an increase in external fraud – in value and volume – over the past three years, and that cyber and data breaches remain the most significant challenge as reported by banks across all three regions.
“To meet mounting customer expectations, financial institutions should focus on building a well-structured fraud management model that can deal with evolving digital transformation, identify unknown risks, harness the benefits of technology and reduce the cost of compliance,“ Tan added.
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