With more consumers having access to online banking options, it is becoming increasingly important for financial institutions to have strong fraud prevention software and techniques in place. Banks of all sizes need to be able to keep their sensitive data and that of their customers safe.
According to a recent Pew Research Center survey, 51 percent of American adults now bank online, and 32 percent conduct financial business through their mobile phone. Furthermore, the research showed that of the 85 percent of U.S. adults who use the internet, 61 percent bank online.
“The wealthiest Americans, with more than $75,000 per year in household income, are heavy users of online banking — three quarters say they do — and mobile banking (44 percent),” explained an American Banker article that discussed the findings. “However, those with a bit less income ($50,000 to $74,999) were slightly more inclined to bank on a mobile device — 45 percent say they do.”
Mobile adoption has increased over the last three years. The Pew study showed that in 2010, just 58 percent of the nation’s internet users were taking advantage of online banking, while in 2011, only 18 percent of cell phone owners were using mobile banking. Now, that number is up to 35 percent.
The right fraud management must include a thorough education for all staff members and the organization having comprehensive software in place. Banks can have access to greater technological innovations, but if employees have no idea how to use them, there will be no long-lasting benefit.
Fraud risk management will benefit financial institutions and their customers, especially as mobile banking continues to grow in popularity.