Banks call for international effort to fight fraud

Banks call for international effort to fight fraud

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Tags: Bank / Credit Union, Banking Executive Summary, Hardware Components, Middle East & Africa, North America, Other, Public Companies, Security, Transaction Processing
4/4/07

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LONDON - A study from First Data International reveals banks are calling for greater cooperation when it comes to fighting fraud in Europe, the Middle East and Africa. But fraud experts from 52 banks across the region acknowledge the significant barriers that stand in the way of collaboration.

The study, carried out by independent researcher Olive Insight, explores the experiences and opinions of senior fraud experts in relation to ATM, POS, online-banking and card not present fraud.

Key findings include:

Fraud is global, learned and progressive. Ninety-six percent of respondents believe fraud is perpetrated on a global stage, learned and passed from one part of the world to another, meaning the industry has an opportunity to anticipate how those involved in fraud will strike next.
Banks' efforts to combat fraud are constrained by concerns about the customer experience and their own competitiveness. Data-protection legislation is seen by many banks as a significant barrier to industry cooperation.
Fifty-five percent of respondents believe regulation helps to combat fraud. Others, especially in Western Europe, are concerned regulation may prove too restrictive in a rapidly changing environment.
Banks are most concerned about new and emerging frauds. While ATM and POS frauds are more prevalent - and more expensive - online fraud is a real problem across Western Europe, and a significant threat elsewhere in the region where Internet usage is expected to rise.
Technology is a key weapon in the fight against fraud and a clear priority for more than 50 percent of respondents. Many organizations are introducing anti-skimming devices and improving security at ATMs. Innovative ways of analyzing data are under review and need further exploration.