Efficient data sharing and closer working relationships will cut down on fraud in financial institutions

A closer working relationship needs to exist between security and fraud monitoring departments to protect customers.

Speaking to SC Magazine this week, David Divitt, fraud solutions consultant at ACI Worldwide, said that there would be a lot of benefit for customers as systems can be integrated and if a customer had a Trojan doing banking fraud on their machine, for example, then the fraud department would be flagged.

Divitt said: “This is the next logical step, they have the IP addresses and are network-based, but the fraud department is not on the network. Sharing has to happen on the front line, people who do it have to get a bye from their manager to do that, but the risks come from people on fraud, saying 'have you seen this?'

“You take the customer across the board so they are not isolated and only share information in-house. There is a disconnect between IT, fraud and justice, but identity fraud is not just a white collar crime, it is intrinsically linked to terrorism and drug trafficking and if you cut off the supply of money you can stop them in their tracks.”

He also claimed that greater sharing of geolocation technology and IP addresses of mobile phones, and knowing where customers are in order to determine if they are the victim of fraud, can help to reduce incidents.

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