During the pandemic, the number of data breaches has increased drastically: cyberattacks targeting banks have even grown by 238 percent. This fraud surge goes hand in hand with the growing use of the mobile and digital banking channels.
While this trend had already started before the pandemic, it was greatly accelerated when bank branches closed and the digital channel was the only option.
With one in three customers in Southeast Asia having used mobile banking more than they did prior to the crisis, and the shift to digital channels likely to be permanent, it is time for banks to lock-down the security of their digital offerings.
We discuss 4 key areas financial institutions should consider in order to protect their digital channels against fraud.
1. Become a digital-first organisation
The importance of having a digital-first business model cannot be denied after the pandemic. Many banks realised they needed to accelerate their digital transformation plans in order to meet consumers’ expectations.
As threats continue to rise, the security of customers’ accounts and sensitive data throughout digital and mobile channels has never been more critical. Approximately 25 percent of the 15 billion leaked consumer credentials available to hackers on the dark web contain bank account information.
Banks should look to adopt cloud-based platforms and security solutions for their back-end infrastructure, which will allow them to become more agile, respond faster to changing customer needs and react to fast-changing security threats.
2. Reinvent the customer journey
Often, the first experience a customer has with a bank is the process of opening a new account. However, this process is also highly targeted for fraud.
A study from Aite-Novarica Group states that 65 percent of anti-money laundering professionals say the use of synthetic identities in new account fraud is a bigger threat for banks than traditional identity theft.
If banks don’t catch a fraudulent attempt to open an account, they can face big losses.
Balancing security with user experience is key in optimising the customer journey. Customers don’t want to be prompted with a cumbersome authentication process.
At the same…