A clear majority of banks believe they will never be capable of eradicating cyber-crime, with fraud monitoring and detection tools at the top of their shopping lists as they strive to keep the crooks at bay.
In a poll of 100 banking executives from 50 US financial institutions attending a Fundtech client conference, 66% expressed fears that cyber-crime was uncontrollable. A similar majority see fraud monitoring as their biggest challenge, with 84% believing that better detection tools are the keys to addressing spiralling levels of online crime.
George Ravich, Fundtech chief marketing officer, says: "Addressing fraud is the banking industry's most pressing problem. With little expectation that cyber attacks will be brought under control anytime soon, banks, their customers, and their technology suppliers must collaborate in order to effectively quell this growing challenge."
Client education will be key, although the disconnect between banks and their small business customers is evident in a spate of recent ACH wire frauds that have deteriorated into courtroom squabbles over liability for losses.
While 79% of executives quizzed at the Fundtech event think that only a small fraction of their business client base understands their liability for fraudulent transactions, three quarters believe that SMEs would be willing to change financial institutions for better security.