According to survey results released by the Independent Community Bankers of America (ICBA), community banks are trying to reduce fraud losses by incorporating technological solutions and staff training programs. Additionally, the majority of community banks (84 percent) attribute the increase in fraud to signature debit card fraud. Below are several other key findings from the survey results:
- Payment fraud is a challenge for virtually all community banks. Nearly every respondent indicated they had experienced fraud attempts or fraud losses.
- Signature debit cards are most vulnerable to fraud and are a key target for fraudsters. The highest numbers of fraud attempts were caused by signature debit cards.
- Potential losses from accounts takeover are a serious concern for community banks. Even though only 7 percent of community banks cited this as a common fraud scheme, they continue to invest heavily in fraud prevention for wire and ACH.
- There is no magic bullet. There are many tactics community banks use in the fight against fraud. The most common are: PIN authentication, signature verification, customer authentication for online transactions and magnetic strip authentication.
For more details on the survey findings, please ICBA.org.