By Kelly Jackson Higgins
Oct 05, 2009
A former Wachovia Bank executive who had handled insider fraud incidents
says banks are in denial about just how massive the insider threat
problem is within their institutions. Meanwhile, the economic crisis
appears to be exacerbating the risk, with 70 percent of financial
institutions saying they have experienced a case of data theft by one of
their employees in the past 12 months, according to new survey data.
Shirley Inscoe, who spent 21 years at Wachovia handling insider fraud
investigations and fraud prevention, says banks don't want to talk about
the insider fraud, and many aren't aware that it's an "epic problem."
"There needs to be more training around this issue," says Inscoe, who
co-authored a book about bank insider fraud called Insidious -- How
Trusted Employees Steal Millions and Why It's So Hard for Banks to Stop
Them , which publishes later this month. "We are seeing a huge
increase in this country of organized crime rings threatening
individuals who work in financial institutions and making them [commit
fraud on their behalf]," she says.
Meanwhile, according to a new survey by Actimize, nearly 80 percent of
financial institutions worldwide say the insider threat problem has
increased in the wake of the economic downturn. "A significant number of
folks are being impacted more than a couple of years ago," which is when
the last survey was conducted, says Paul Henninger, director of the
financial crimes product group at Actimize. The Actimize survey found
that only 28 percent of financial institutions had not suffered an
insider breach in the past 12 months.
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