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Cyber-proofing financial services for the online generation

In one of the most recent invasions of personal identifiable information, the Federal Reserve database designed to facilitate communication between banks during a natural disaster was attacked by cyber hackers Anonymous. It seems that no one is secure from cyber hackers. They are continuously evolving new fraud schemes and more organized, sophisticated attacks.

According to Gartner, in 2013 e-commerce and financial services companies will continue to be hit with distributed denial of service attacks and criminal social engineering ploys. The motivation behind these schemes can be arrogance, politics or religion- even greed.  Whatever the reason or purpose, our electronic and digital channels are not as secure as they need to be.

To make matters worse, cyber hackers are aware that the Millennial Generation, otherwise known as Gen Y, are at home with –
if not most comfortable – comparing and purchasing products and services in an online environment. Organizations, especially financial services institutions, must cater to this online consumer behavior while safeguarding against the dangers.

There are two important tactics you can employ to divert cyber criminals:

1.      Layered security and behavioral analytics Behavioral
modeling is critical to understanding ‘normal’ transaction patterns.  When cross-channel entity-link analysis is also included, a financial institution can begin to see the entire lifecycle of relationships and patterns – the who and how those payments are made.

This analytical approach – tied to the ability to do real-time decision making – can help fraud teams detect anomalies from “good  behaviors” so transactions for good customers are not disrupted. This gets to the heart of the issue: protecting good transactions while stopping revenue-draining ‘bad’ transactions.

2.      Educate for better customer experience - People continue to be the weakest link in the security chain. They fall for sophisticated social engineering ploys designed to grab personal information.  These scams, disguised as communications from
legitimate authorities are delivered via emails, phone calls, and text messages.  Educating consumers is critical to both the customer and financial institution’s security. With better knowledge, customers can protect themselves from these types of scams.

Also remember that successfully fighting cybercrime is a team sport. Your collaboration with law enforcement can be the putting all the puzzle pieces together. Be sure to cooperate with law enforcement and industry associations to share intelligence in a timely manner. Coordinating a strengthened defense across the enterprise should become part of the executive business strategy.

The challenge of providing security against cyber crime while ensuring appropriate transaction methods for Gen Yers is definitely a balancing act. It’s an ongoing challenge to reduce costs without sacrificing organizational efficiency or to increase profitability without negatively impacting customer satisfaction. Adding analytics to your cyber fraud strategy will help protect your customers
and assure the safety of their money and personal information, therefore increasing customer satisfaction.

Learn more about SAS Security Intelligence.

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