Apart from enlisting active co-operation from their technology vendors, banks must look to build a close rapport with other banks, investigative agencies and regulators to ensure that there is prompt and coordinated exchange of information, whenever required. With the spread of mobile banking, banks would also need to closely engage with the telecom service providers for reducing the technology related fraud risk.
Banks could also consider seeking insurance coverage as a risk transfer tool and a mitigant for the financial losses arising from technology induced fraudulent customer transactions. Frauds in banks’ advances portfolio 17. As I mentioned earlier, frauds related to the advances portfolio accounts for the largest share of the total amount involved in frauds in the banking sector.