123chargeback/Blog/Who Is Responsible For Bank Frauds and How to Detect and Prevent Them

Who Is Responsible For Bank Frauds and How to Detect and Prevent Them

Who Is Responsible For Bank Frauds

How to prevent frauds in bank business? It is not an easy question because it arises a lot of others. However, there is the only one that is as important as the main question and it relates to the responsibility of bank frauds. If you are interested in this topic, continue to read. We will give you all the answers.

How Do Bank Frauds Happen?

If a bank fraud has occurred, it means that someone, through deception or false information, stole/was trying to steal important personal data from the bank or the client of this bank. According to US law, such actions are considered bank fraud only when the person was aware of their actions and their purpose was to illegally obtain data. Let us explain to you with a simple example that would be understandable to people of all professions. Mr. X called you and introduced himself as a bank employee, reported an attempt to steal your data, and asked questions that a real employee would never ask (PIN, CCV, etc.). Whether you answered or not, it doesn’t matter, since even an attempt is a fraud.

Who Is Responsible for Bank Frauds?

How to Prevent Bank Frauds?

It is believed that the security or system administrator is responsible for banking fraud. However, is it so? Let’s first find out what their responsibilities are. The security administrator is responsible for:

  • Monitoring networks for danger;
  • Creation of plans for disaster recovery of networks;
  • Development of security standards for networks and the organization as a whole;
  • Timely software update;
  • Providing advice on improving safety.

The system administrator is responsible for:

  • Daily network forecasting and tuning;
  • Installation of software;
  • Timely repair and installation of updates;
  • Solving problems immediately after they appear;
  • Collecting data that is used in evaluating performance optimization;
  • Setting network permissions inside and outside the organization;
  • Training of the organization’s personnel in the correct and safe use of the equipment.

That is, if the fault lies with the bank, then the main part of the responsibility would fall on the one who did not fulfill their duties, especially bank frauds prevention and detection, in good faith. However, this would already be determined by the bank’s internal investigation. Therefore, both the security and the system administrators can be guilty.

How to Prevent Bank Frauds?

We will tell you what the administrator should do to protect you. If you find most of the steps below, then you can trust the financial institution. And administrators can use this information as useful tips.

  • Always evaluates risks to prevent potential threats;
  • Presence of scheduled cybersecurity measures;
  • Setting strict rules for managing passwords;
  • Safe access to the most important systems;
  • The presence of several administrators in the bank and the distribution of responsibilities between them;
  • Timely update of security protocols.

It is better to know how to prevent online banking frauds rather than becoming a victim of them. See you soon!

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Author of article

Arthur Specter

Interests: accounting, literature, banking, jurisprudence

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