Online fraud still a concern for Asian financial institutions

23 December 2009

Financial institutions in Asia remain concerned about online crime with many falling victim to internet fraudsters during the last year, a new study has shown.

The State of Online Security in Financial Institutions in Asia 2009 survey, undertaken by Readiminds, revealed that only 20 per cent of those companies questioned claimed to utilise fraud detection technology.

This was despite almost all of the bank representatives saying their organisation had been targeted by cybercriminals during 2009.

The report revealed that three-quarters of respondents rated the anti-online crime efforts of their employers as average.

Naren Nagpal, Readiminds chief executive officer, said: "It is becoming obvious that there is increased awareness of the importance of transaction security and online financial fraud prevention in Asian financial services industry.

“There exists an excellent opportunity to leap frog and adopt real-time, integrated, multi-layered, cross-channel Financial Fraud Prevention as opposed to doing a catch-up with traditional piecemeal fraud/channel-wise approaches.”

Further findings from the study showed that a real-time approach to fraud detection was the preferred method of protection while identity theft and the safety of account and fund transfers were deemed the biggest security issues for banks.

By Jim Ottewill

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