Daily CSR
Daily CSR

Daily CSR
Daily news about corporate social responsibility, ethics and sustainability

Facing Financial Crimes : How Companies Get Ready for The Fray


You will be surprised to find out that one of the most advanced and fast growing markets is the industry of fraud. One need only look at the statistics!

Source : fbi.gov
Source : fbi.gov
The growth is obvious, isn’t it? In fact, there is no wonder. The thirst for easy money has always been a powerful stimulus for a certain category of people. Given that the end (in this case, a large sum of money) sanctifies the means, they are going to any lengths.
Interestingly, it is possible to meet real geniuses among the criminal minds - they come up with long-winded schemes, develop more and more sophisticated technology, draw, print, forge signatures, hack banking systems... and it is nearly impossible to count up everything.

Let's look at frauds in banking technologies. Usually those who encroach on the banks treasures, are attracted by a huge jackpot – nothing special, just recall the annual volume of banking operations worldwide. In the pursuit of profit, fraudsters are developing newest schemes, forgetting, however, that this is a double-edged sword. Banks are hard nut to crack. Each fraudsters’ step meets new backlash of safety systems developers - and, as a rule, they live up to their clients’ promise. That is precisely why the market of integrated secured solutions is in great shape - it's all about safety of our savings, raised by the sweat on our collars.

Now, let's look at the main trends of the market security solutions in the banking sector.


International banking sector has got a steady trend of the development of the functionality of the web-banking for individuals and legal entities. Fraudsters like new features too, especially when it comes to the opportunities to steal the money. Accordingly, banks simply have to invest in improving the security of its Internet services. 

Apparently, attacks on banks’ information system grow into fashion. Correspondent accounts management tools are exposed to direct attacks, what allows fraudsters to simultaneously withdraw a lot of money. Such operations require highly skilled hackers and serious preparation. Thus, often the object of attacks is not a customer, but bank.
Cryptzone is a company that specializes in securing information systems with dynamic, context aware security solutions that protect critical services, applications and content from internal and external threats. Leo Taddeo, Chief Security Officer of Cryptzone, says: “Cybercrime is now the dominant, fastest growing security threat to businesses and critical infrastructure, especially in the financial sector. In diving deep into breach after breach, it became clear that there are very few perimeter protection technologies that can stop, or even slow down, a dedicated cybercriminal or nation state.”


The presence of counterfeit money in circulation does serious damage to the economy. Counterfeits cause inflation, which, in turn, devalues ​​the money, as the money excess leads to higher prices for goods. Not only macroeconomic but also ordinary citizens are exposed to risk. In the second half of 2014, the European Central Bank (ECB) has withdrawn 507,000 forgeries from circulation. Much of fakes (97.5%) were found inside the euro area.

Statistics show that 20 and 50 euro bills are the most popular with counterfeiters (86% of the detected by the ECB), followed by banknotes of €100 (8%), €200 (1.5%), €5 (1 %) and €500 (0.5%).

Building on this, we can conclude that scammers make their bets on most running bills, which are used so often that people do not pay attention to detail. However, the Central Bank stresses that almost all fakes can quickly be identified by touch, as well as by general form – one just has to look at the bill closely.
But not only money can be falsified. Checks, letters of credit, payment orders - all of them are under threat too as the new fraud technologies are mushrooming up. Checks are easy to counterfeit with the help of a scanner and computer. These types of fakes are nearly impossible to detect.

Ironically, modern technology, thanks to which governments give the highest possible protect to bills, allow fraudsters to produce more sophisticated forgery too. This fight requires, above all, being a step ahead and use of the latest technologies and methods. Thomas Savare, head of Oberthur Fiduciaire, a world leader in security printing which includes banknotes printing, explains: “Our profession is unique in that we must not only keep a step ahead of our competitors, but also counterfeiters and forgers, against whom we are engaged in a real race.”
Oberthur Fiduciaire that works with more than 70 central banks all around the world, spends a fortune each year on R&D just to keep an advantage over counterfeiters. “White collar criminals are not only clever, says Savare. Most of the time, organized crime hires engineers and researchers to help professionalize and get the upper hand over private companies and legal authorities. That’s the main reason why companies like Oberthur Fiduciaire need to develop and implement integrated and invisible securization tools permanently”.    


Causes of criminal interest to ATMs are as plain as daylight. First, cashpoints are widespread enough. Secondly, there is an obvious lack of physical protection. ATMs themselves, as well as law-abiding citizens, carrying out financial transactions, may come under attack. All of this requires labeling ATMs as objects that need especially strong security regime.
According to the APACS (Association for Payment Clearing Services, UK), the largest losses bring the following types of ATM offenses: skimming, physical intervention, cyber-attacks and trapping.

ATM protection is one of the most difficult and complex tasks. Extra locks in safes devices are used along with alarms, cashpoints are equipped with sensors, gas analyzers with special heavy-duty sound sirens and smoke generators, fingerprint scanners and advanced software protection. There are even special cassettes with cash coloring function in the event of unauthorized access attempts.
Oddly enough, the most effective means of security are simple precautions - direct visibility of the ATM, alarms, installation in the wall of adequate strength and away from windows and doors.
Wade Chumney, assistant professor of business ethics and law at Georgia Tech University, comments: “In the future, it is likely that attacks may focus more on the software that runs the ATM, as this provides greater potential rewards for the thief, and potentially less risk. While future security will still focus on physical attacks, by implementing new hardened designs, they will also feature security that is less obvious to the user, as in the software utilized to run the device.”