Protecting financial assets became a high priority for many consumers after the 2008 financial crisis. Banks must also protect their bottom lines with financial institution bond coverage. In addition, these risk management strategies can help prevent fraud.
As seen on www.fgib.com, computer fraud, counterfeiting, employee dishonesty, extortion, securities, and money fraud, forgery and ransom are risks banks need to protect against. With so many ways to commit fraud within the institution, it is imperative banks spend the time and resources to develop an effective risk management strategy.
Artificial intelligence systems are still developing but can be a huge help to prevent fraud within the bank. The algorithms of the past get a boost from AI to adjust faster to capture fraudulent activity on bank accounts. AI can change algorithms for each customer depending on their spending and usage habits.
A new way banks are combating fraud include giving customers more control over their credit and debit cards. Allowing the customer to control where a card can be used, for how much money and when it is active helps the bank stay on top of fraud. If the customer flags an account as inactive, the card cannot be used.
Even with implementing new and working with existing risk management strategies, there are still risks. Financial institution bond coverage helps protect the bank when fraud happens.