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Recent data breaches put high pressure on fraud operations

Thursday 27 March 2014 00:47 CET | News

Recent data breaches suffered by US-based retailers have had a major impact on the operations of financial institutions, new findings indicate.

According to data from ACI Worldwide, an international provider of electronic payment and banking systems, 44% of customer accounts have been compromised. The same source points out that while the headlines continue to highlight data breaches, which involve compromised payment, banking and personal data, financial institutions must stay vigilant in combating fraud loss and maintaining customer goodwill.

Results show that over 15% of respondents declared that recent breaches put increased pressure on fraud operations. Another 12% indicated that they suffered a negative impact on their brand, while 22% said they felt no direct impact from breaches.

Research unveils that more than 75% of respondents said they are looking at additional resources to combat fraud in their organizations. Of those, 50% stated they are looking to invest in fraud detection technology, more than 15% are investing in more training for their fraud management teams and 10% are beefing up staff with new personnel.

The survey also reveals that when it comes to EMV technology and standards, many in the US are re-evaluating their strategies after these recent events. Regions including Canada and UK attribute decreased card fraud to the more secure chip & PIN methods employed as part of their EMV strategies, which were rolled out years ago. More than 40% of respondents indicated they are more aggressively looking at their EVM plans. Another 30% are still exploring options required to meet the 2015 liability shift, and just under 10% indicated they are already EMV compliant.

The study is based on the answers of several financial industry professionals and was conducted in March 2014 at BAI Payments Connect.
 


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Keywords: data breach, US, ACI Worldwide, online fraud, payments , banking
Categories: Fraud & Financial Crime
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Countries: World
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Fraud & Financial Crime






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