KUALA LUMPUR: KPMG’s Global Banking Fraud Survey finds that banks are still reactive towards fraud and not investing enough on fraud risk management.
According to the survey,which was conducted by the multinational accounting firm between November 2018 and February 2019,the total cost of fraud risk management was not monitored by 52% of banks surveyed.
“This makes it an outlier within bank operations and reduced visibility to the board and risk committees who make key budget,resourcing and investment decisions,” KPMG Malaysia head of forensics Tan Kim Chuan said in a statement.
The survey was conducted across 43 retail banks,13 of which are in the Asia-Pacific region,five in the Americas and 25 in Europe,the Middle Eastern and African regions.
Based on the findings,61% of the banks surveyed have reported an increase in external fraud – in value and volume – over the past three years.
The survey also found that over half the respondents recovered less than 2% of the fraud losses,thereby demonstrating that fraud prevention is key.
“Cyber and data breaches remain the most significant challenge as reported by banks across all three regions,and these challenges may be amplified with the increasing popularity of open banking.” — Bernama