Fraud risk management
Fraud risk management
A guide for banks to the business implications of COVID-19.
Why strong fraud risk management is crucial in time of Corona?
- The decentralised way of working and move to digital banking with less customer "face time", potentially results in reduced oversight and control, which increases fraud risks
- Crisis situations like Corona feed the three elements of the fraud triangle: 1) increased pressure, due to uncertain (financial) times, 2) more opportunity, due to less focus on key risks and reduced oversight and 3) easier rationalisation: due to justification of deviant behaviour in uncertain times
Key challenges faced
- Increased and new type of scams by criminals to defraud account holders using social engineering or phishing
- Remote working reduces the oversight on your employees
- Crisis situations promote justification or ignoring 'wrong' behaviour
- Increased pressure experienced by employees to balance workload versus compliance requirements
- Criminals utilise crisis situations and spread COVID-19 related (mis)information or offer fraudulent services
How to respond
- Create awareness with your employees around current fraud risks and promote a culture to discuss dilemma's, disruptions and shortcuts of processes
- Educate customers and create awareness on the diverse range of methods criminals deploy to defraud account holders
- Perform a fraud risk assessment on your key processes
- Develop and deploy fraud risk (data) analysis to identify unusual transactions and especially new payment fraud methods
- Create a fraud or incident response plan, defining roles and responsibilities for when an incident occurs and what the required follow-up activities are
How we can help
- Open culture and ethics: We use soft controls as a basis in supporting banks when changing culture and promoting ethical and compliant behaviour, using for instance training and awareness sessions.
- Fraud risk management: We offer fraud risk assessments to analyse internal processes and identify potential fraud risks.
- Implementation of fraud detection solutions: We have successfully supported multiple clients with implementing fraud detection solutions, incorporating fraud data analytics, a whistleblowing hotline or compliance monitoring.
- Performing remote investigations: We have a remote investigations methodology to enable investigations when physical access is not or limitedly possible.
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