Independent Banker - October 2017 - 77

" When a community bank gets hit,
the impact is often greater than if
a large bank gets hit. "
As much as community banks
want to protect their interests and
their customers, Inscoe points out
that " the idea of private personal
data is becoming a myth due to the
myriad and ongoing data breaches
on retailers, restaurants, government
entities, health care providers and
universities. Any entity that operates
online is at risk of a hacking attack,
and the data stolen is often monetized
on the dark web. "
Bolstering tech defenses
Paul Tomasofsky, partner with
McGovern Smith Advisors, says it's
essential to keep customers plugged
in to the risks-and the ways to avoid
them. He encourages banks to push
access to free credit reports and
alerts, so that customers can take
a more active role in watching and
managing their accounts for possible
identity theft activity.
Many new technologies can also
help community banks " better
understand who they are dealing
with, particularly in digital channels
or contact centers, " Inscoe says.
" The use of biometrics is growing-
Touch ID, voice, facial-as well as
other technologies that can assist
with new account applications and
verifying identity documents via
mobile devices, using information
about incoming calls and devices
customers use to access their
accounts. " As banks implement these
technologies, Inscoe believes identity
fraud will decrease, though she
notes fraudsters will likely launch
different modes of attack.
Tim Francis, enterprise cyber
lead at Travelers, believes another
key prevention opportunity is when
a community bank informs its
customers that the bank will never
send emails asking for credit card
information or fi nancial records.
This way, Francis explains, " if and
when a spoofi ng email attempt takes
place, the customer might have a
chance to remember, 'Wait a minute.
That doesn't sound right. They said
they weren't going to do that.' "
Similarly, Wagers agrees that
educating the bank's employees is of
utmost importance. " We need to be
aware that the client may be involved
in fraud that they don't even understand.
And we need to stop and help
them before they get stuck, " he says.
Gough credits community banks
with being among the fi rst to adopt
automated tools for anomaly detection
and fraud detections. " This
has been coupled with additional
1.5
million
Fake accounts opened
using stolen information or
made-up identities in 2015,
up from 700,000 in 2014
layers of protection around customers'
accounts, " Gough says, " and
any ability to transfer funds out of
the institution. "
Karen Epper Hoffman is a writer in
Washington state.
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Independent Banker - October 2017

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