Internal fraud is most difficult threat to combat, IT vendor says

13 October 2011

Internal fraud is the most difficult threat for financial services firms to anticipate, an IT vendor has warned.

Hazem Mulhim, chief executive officer (CEO) at EastNets, identified three key areas which an effective anti-fraud solutions need to tackle - online, internal and ATM fraud.

Mr Mulhim said that despite instances of skimming at ATMs and hack attacks on banks and large financial institutions rising, internal security issues presents the most headaches to IT vendors when trying to plan an anti-fraud strategy.

He stated: “Internal fraud is the toughest threat to plan for as it is related to behavioural relationships. Although it is tracked through following patterns surrounding an account and employees access to certain security levels, it is the most difficult because it is a behavioural relationship rather than mechanical one which is under scrutiny.”

“Online and ATM threats are easier to predict as there is immediately a pattern which can be used to follow irregular activity. With internal fraud, you have to run through various scenarios which are subject to change due to the human element. The fraud depends on how they feel,” the EastNets CEO explained.

His comments follow the recent Sibos conference in Toronto where EastNets showcased its en.SafeWatch Anti-Fraud solution.

The new service can forecast credit card, wire and internet fraud as well as performing blocking actions on fraudulent behaviour in real-time.

By Jim Ottewill

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