Novaricaâs study showed that many financial institutions blame a lack of resources as one of the main reasons for their anti-fraud strategy not working effectively.
The research revealed that 41 per cent of banks cite organisational silos as the main concern.
Additionally, many financial institutions have yet to implement traditional fraud prevention methods such as alerts or knowledge-based authentication.
Matthew Josefowicz, partner and managing director at Novarica and lead author of the report, said: âThe proliferation of channels and the accompanying increased expectations for speed and convenience means that fraud detection and prevention relies heavily on information technology capabilities.â
"As fraud patterns get more sophisticated and cross more organisational silos, banks need to invest in analytics as well as traditional channel security."
In other areas, such as card, cheque and ATM fraud, banks were more confident saying that they were well prepared to combat fraudulent activities in these areas.
Previous research by Novarica showed that 53 per cent of banks expect mobile banking to be the technology most adopted by consumers in 2011.
By Jim Ottewill