Future of Banking: Internet Security and Fraud Mitigation
When it comes to cybersecurity and the inherent risks associated with internet and mobile banking, the future is already here. The Association for Financial Professionals conducted its 2017 annual Payments Fraud and Control Survey and found payment fraud and data breaches are increasing. Neither huge corporate giants like Target and American Express nor small mom-and-pop stores are completely immune.
Cyber threats also affect community associations, which hold sensitive information about their homeowners. To avoid becoming victims of internet fraud, all communities should follow the recommended best practices and use all available defenses. A Cyber Liability insurance policy can provide coverage for these perils, but education and proactive measures are the best defenses.
Financial institutions are taking the necessary steps to secure their customers’ assets, information, and identity. Many banks today have partnered with malware service providers to prevent phishing; to provide secure access to their websites; and to detect, prevent, and remediate mobile threats.
Cyber threats also affect community associations, which hold sensitive information about their homeowners.
Additionally, many banks offer online banking tools that provide additional security and rigorous safeguards, including:
- Strong password requirements
- Protection from credential harvesting— gathering authentic login credentials
- Authentication features to verify valid users
Other online banking safeguards include:
- Requiring dual approvals to add, change, or delete users
- Requiring dual approvals to change wire and electronic payment instructions
- Granting unique access and functions for each user
- Providing alerts that report account activity immediately
- Setting limits on financial activity for each account user
Positive Pay is another online banking safeguard. When a check is deposited or cashed, the automated fraud detection tool matches the account number, check number, and amount against a list of checks previously authorized and issued. The check must match the details provided by the issuer, or the check will not be paid.
Individuals can take steps to protect their accounts too. Follow these do’s and don’ts:
- Review bank accounts daily. Vigilance is the first line of defense
- Maintain separate workstations when working with sensitive accounts and critical systems
- Change passwords often and make them complex
- Install personal firewalls and update rules regularly
- Log out of the banking website after you’re done using it
- Open emails from unknown sources
- Install software from unknown sources or websites
- Record passwords
- Click on unknown internet links
- Use a generic user ID
By following these steps diligently, and partnering with a bank that safeguards your data and privacy, you can do your best to combat the rising threat of cyber fraud.
Popular Association Banking (“PAB”), a division of Popular Bank, has been an industry leader in providing financial products and services to community associations for more than 20 years, with an active lending platform in 30 states. Cybersecurity features are available at Popular Bank, where we value your trust and care about your peace of mind.
The information mentioned in this article is for informational purposes only, is intended to provide general guidance, and does not constitute legal or professional advice. You should seek the advice of a professional advisor and/or legal counsel to address your specific needs regarding the issues related to your situation. Popular Bank does not make any representations or warranties as to the content contained herein and disclaims any and all liability resulting from any use of or reliance on such content.