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UK banks are rethinking anti-fraud strategies

Karl Flinders
Wednesday 28 November 2007 03:37

UK banks are upgrading the systems and processes used tofight fraudand focusing on prevention, according to research fromFidelity National Information Services(FIS).

The research revealed that retail banks felt that they did not yet have the right tools to deal with identity fraud and phishing attacks. Most also believe the move to faster payments could put pressure on their existing fraud systems

An APACs spokeswoman said the arrival of faster payments in May will increase the risks of fraud because it will be a service that could be attractive to fraudsters. But she said like all other frauds the banks are developing systems to prevent it.

Mark Davey, managing director for EMEA at FIS, said the research shows that banks are changing the way they think.

"Banks have relied on older systems and processes that are not equipped to deal with increasingly sophisticated fraud attacks," he said.

Companies in the mortgage banking sector said they are dealing with more sophisticated and specialist fraud such as money laundering. Davey said fraud-specific preventative tools are needed to fight fraud, which often emanates from organised crime. In the private wealth sector banks are using enterprise-wide analysis to track and monitor potential fraud in the hope of early detection. In both sectors companies claimed that more sophisticated technology was required.




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