Growth and globalization are the names of the game in the Banking industry. As businesses expand to growing markets like India and China, they must contend with growing threats in the areas of check counterfeiting and identity theft.
Consumers and businesses are becoming much more reliant on online management of their bank accounts, which offers convenience to users and control to the banks. Security is still a struggle in this area, especially as documents transition from online to print and back.
There is heightened attention to security and fraud control in the industry, with banks investing heavily in IT and HR to thwart both insider and external criminal behavior. The door has not closed on check counterfeiting, especially with the proliferation of check imaging, which can eliminate traditional paper-based layers of security
Areas of Concern
Check Imaging
With various forms of check fraud already on the rise, the trend toward check imaging stands to have an even greater impact on the security of personal and business banking. Most large banks already offer online check viewing and, with the execution of the Check Clearing for the 21st Century Act (“Check 21”), the practice of truncating checks (converting them into images) will only grow. Though check imaging will certainly contribute to cost savings and increased convenience for customers and banks alike, the transformation presents significant risks to everyone involved since these electronic “substitute checks” contain all of the printed version’s sensitive information, with little, if none, of its security features.
Online Statements
As online banking usage grows to upwards of 63 million Americans, so too do the risks of fraud and counterfeiting. While online phishing and identity theft scams are prevalent, the printing of online statements or transaction logs in the home can also open up new avenues for the capture of sensitive information by unwanted individuals. Account documents printed off a personal printer often are not regarded as “shred-worthy” as statements that come in the mail. Yet, they contain similar information and need to be treated as carefully as any financial record in the home.
Credit Card & Loan Applications
The process of applying for a credit card or loan can be initiated online, over the phone or by mail, it almost always involves paperwork that must be printed or completed and then sent to the financial institution. At this point in the process, the applicant trusts that their information will be received by the institution unaltered with no theft, fraud or counterfeiting occurring along the way. It’s a giant leap of faith, and one that can go badly for the individual or the institution. By adopting security protocols that protect these sensitive documents and close the gaps in the transmission security, lenders and creditors can protect their customers and their own bottom line.
Outlook
Financial information is often the most sensitive to theft and the most vital to personal and commercial productivity. Technological advancement has opened new electronic avenues for banks to conduct business and improve their efficiency. However, printed material is still vital to the daily transactions and record keeping of banks and their customers. It’s up to both the institution and the consumer to be conscious of the security risks they face, but it is at the institutional level that true progress can be made in the fight against fraud and counterfeiting.
AuthentiGuard On-Demand Can Help
AuthentiGuard-On-Demand is a sophisticated print security technology that combines the benefits of copy and tamper protection with the ability to conceal sensitive data within printed documents. Utilizing standard desktop and commercial printers, the solution provides for the dynamic delivery of comprehensive protection to the checks, forms and applications that drive the banking industry.