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16 September 2009
Norkom Technologies has today launched its fourth annual survey of financial crime fighting activities in the world’s banks.
In this year’s research, 250 global financial crime professionals claim that measures taken by their organizations to reduce costs in the wake of last year’s financial crisis are leaving them and their customers increasingly vulnerable to criminal attack.
You will read how…
50% of respondents say that cuts to their own departmental spending plans are weakening their ability to keep pace with a rising tide of criminal attack, with 12% and 9% of financial institutions losing a quarter of their AML and fraud budgets respectively
… while at the same time:
71% of respondents say fraud attacks against their business have increased over the past year, with 67% claiming their financial losses to fraud have grown over the same period. For almost a quarter (22%), that growth has been greater than one-fifth.
 “It’s ironic that the very actions banks are taking to shore up their damaged finances may sabotage their chances of recovery,” says David Dixon, Norkom’s Director of Global Solutions. “However, there is clear evidence that advanced crime fighting approaches, underpinned by consolidated technologies, can reduce fraud losses and, simultaneously, reduce operating costs in crime fighting departments.”
“Two lessons emerge from this research,” says Dixon. “Firstly, attempts to save money by cutting financial crime budgets are likely to be counter-productive. Secondly, fraud losses can be reduced through the use of consolidating technologies which, in turn, allow business processes to be streamlined. So, if the twin imperatives are to cut losses and stem costs, there’s good news on both fronts.”
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