Independent Study Reveals Breakdown in Communication to Secure Banks
Data highlights include:
- 55 percent of businesses reported experiencing fraud in the last 12 months, with 58 percent of fraud enabled by online banking activities.
- 80 percent of banks failed to catch fraud before funds were transferred out of their institution. In 87 percent of fraud attacks, the bank was unable to fully recover assets.
- 57 percent of the respondents that have experienced a fraud attack were not fully compensated by their banks. 26 percent were not compensated for any part of their losses.
- 40 percent of businesses said have moved their banking activities elsewhere after a fraud incident.
- 11 percent of businesses that have experienced fraud claimed they have terminated their banking relationship following fraud attacks, and additional 29 percent said they did not fully terminate their relationship, but moved their primary cash management services to another institution.
- 24 percent of businesses claim that their banks do not provide a policy explaining the bank's responsibilities to secure and protect their companies' accounts from fraud.
- 39 percent are unsure if such a policy exists.