More than two-thirds of senior banking executives said remote work made it more challenging for their organizations to perform fraud and financial crime prevention functions, according to a report commissioned by FICO. And, the report found, banks had to content with higher-than-normal fraud attacks despite the diminished capability to deal with them.
As merchant fraud teams have also experienced, the pandemic exerted significant additional stress on fraud teams at financial institutions. The FICO research, conducted by OMDIA, noted other challenges for fraud fighters—including reduced access to experienced staff (identified by 38 percent of respondents), insufficient resources (36 percent) and that antifraud efforts affected the customer experience (45 percent)—that were exacerbated by the pandemic.
But, according to TJ Horan, vice president of product management at FICO, how teams adapted to the challenges was positive.
“The pandemic put stress on numerous industries and functions, including fraud and financial crime, as fraudsters tried to take advantage of new opportunities and changing customer behavior,” said Horan. “As we come to the one-year mark for Covid-19 measures such as remote workforces, these findings illustrate how teams managing fraud are demanding flexibility, centralized decisioning, automation, as well as an integrated platform to drive effectiveness. It is encouraging to see how today’s teams are rapidly evolving to handle the fight against financial crime.”