With fraud costing entities an estimated in the range 5-10 percent of their annual revenues, organizations lacking proactive fraud prevention measures are the most at risk.
Fraud prevention works as the complexity of techniques imposed in order to manage the risk of fraud and cut its ongoing cost for all types of entities, having the following methods:
- Defining the legal aspects of fraud prevention
- Recognizing the differences between fraud deterrence and fraud detection
- Identifying reasons why traditional internal controls often fail to deter fraud
- Implementing the factors for establishing an anti-fraud program
- Finding the gaps in your fraud prevention process
- Outlining the elements typically found in an anti-fraud policy.
Proper implementation of the aforementioned methodologies are condictio sine qua non for the modern financial industry.
Modern online and mobile banking has changed the way people bank forever.
Banks compete to provide their customers with an easy and convenient banking experience.
Consequently, by making banking easier for customers, we are unintentionally making it easier for fraudsters.
Financial compliance regulations set the rules and requirements financial institutions must abide by. If an institution violates these rules and standards they can face fines and even legal punishment. These regulations are imposed in order to maintain confidence in the financial market, protect consumers, control financial stability, reduce fraud and financial crime, and regulate foreign markets. These regulations are supervised and monitored by many different financial enforcers around the world.
Know Your Customer (KYC) or Customer Due Diligence (CDD) policies are critical elements of effectively managing your business risk and protecting yourself from financial crime, Anti-Money Laundering (AML) and Counter-Terror Financing (CTF) perspectives. KYC is the process by which a business verifies a potential client’s identity to ensure they are legitimate. These rules are set in place to help diminish the risk of organizations getting caught aiding criminal activities and corruption.
Anti-money laundering laws like KYC and CDD are in place to help organizations like yours mitigate business risk.
It is key to avoiding heavy fraud losses, hefty fines, and bad publicity.