Webinar Recap: Navigating Fraud and Reputational Risks in Banking Webinar
On May 1st, Bankers Bank hosted an insightful webinar titled “Navigating Fraud and Reputational Risks in Banking.” The event was divided into two main segments, focusing on fraud trends and managing reputational risk.
Segment 1: Fraud Trends and Your Bank’s Response
Shane Bauer kicked off the webinar with a comprehensive overview of the current state of bank fraud. He discussed various types of fraud, including application fraud, check fraud, account takeovers, payment fraud, card and merchant fraud, and elder abuse
Shane highlighted the increasing complexity and prevalence of these fraud types, emphasizing the need for banks to stay vigilant and proactive.
Key points from Shane’s presentation included:
- Application Fraud: The use of generative AI to create synthetic identities, leading to significant financial losses.
- Check Fraud: Techniques such as washing stolen checks and creating counterfeit checks.
- Account Takeover: The growing complexity involving credential stuffing, deep fake audio, and AI-generated phishing campaigns.
- Payment Fraud: Concerns around faster payments platforms and the need for real-time risk scoring and AI-powered transaction monitoring.
- Card Fraud: The prevalence of first-party misuse, chargebacks, and AI-generated fake shopping sites.
- Elder Abuse: The need for robust fraud prevention procedures, employee training, and community outreach.
Shane also discussed the importance of AI-powered tools such as facial recognition, voice analysis, and behavioral biometrics in combating fraud. He provided a list of resources to support fraud prevention efforts, including the American Bankers Association and the Federal Reserve’s Consumers and Communities section
Segment 2: Managing Reputational Risk
David Paxton took over the second segment, focusing on managing reputational risks using an Enterprise Risk Management (ERM) approach. He emphasized the importance of clear messaging, employee training, and proactive customer communication
David outlined both internal and external strategies for managing reputational risk, including:
- Internal Strategies: Engaging law firms, educating staff, and using marketing to create a positive image of the bank.
- External Strategies: Tracking net new households, fraud loss to customers, and critical system unavailability as ERM indicators.
David also suggested additional indicators for tracking reputational risk, such as average officer tenure, customer visits, and social media mentions
Overall, the webinar provided valuable insights into the evolving landscape of fraud and reputational risks in banking. Bankers Bank’s Risk Management Solutions division stands ready to assist banks in navigating these challenges with tailored solutions and professional support.
For more information or to schedule a demo of Bankers Bank’s Risk Insights ERM tool, please contact the Risk Management Solutions team