Community bankers consistently rank cybersecurity and fraud among our highest internal risks, and those risks are growing. From implementing more sophisticated technology in attacks to preying on victims’ insecurities, fraudsters have leveled up their activities. Community bankers need a combination of education and technology to thwart them.
Bankers must introduce a multifaceted approach to fraud mitigation to address today’s concerns. We must focus on understanding the sources and types of fraud, educating our customers and implementing new technology to screen for it. The more we know about identifying potential activity, the more we will be able to stop it.
That’s why this year my community bank is focusing on implementing upgrades to our technology stack that will enhance our fraud prevention offerings. We are also exploring AI-based tools, because we believe they will play a role in fraud mitigation in the future.
At the same time, we are working to keep our employees and customers up to speed on the latest scams. This type of education takes persistence and repetition. To see results, you have to spend time and resources to raise awareness and understanding. It must be a business priority, because our employees and customers truly are our first line of defense.
ICBA can also help. At ICBA LIVE next month, numerous technology providers will share solutions geared toward fraud mitigation—from companies in the Expo to those demoing in the ThinkTECH Showcase. In addition, LIVE will offer sessions including “Unveiling Fraud: Navigating Banking Risks” and “AI-Powered Impostors: The Rise of Synthetic Identity Fraud” to raise community bankers’ awareness of established and emerging risks, helping us to better shore up our defenses.
As new threats emerge, ICBA also provides resources and recommendations on how to address them. Take, for example, the latest guide produced by ICBA’s Check Fraud Task Force, Check Fraud: Engagement With Federal Bank Regulators, which offers suggestions on when to contact regulators, how to frame feedback and where to direct your communication based on the experiences of peer community bankers.
It takes a village to combat today’s threats. Fraud is nothing new; it has always been a part of banking. But in the current environment, our biggest challenge is identifying the trends and new types of fraud early, so that we can mitigate it more quickly. Through a multifaceted approach that incorporates technology solutions and ongoing education—with support from ICBA—we can better protect our banks, customers and communities.
My top 3
February is the height of winter. Here are my favorite things to do to enjoy the winter season:
Go downhill skiing.
Pull my kids on their sled with our UTV.
Cozy up in front of the fireplace.
