Smart Security Systems against Fraud for Banks

1. Banking security with integrated cash management system: More diverse systems for each location
2. Stolen valuables and remote ATMs: Attractive targets for criminals as they are seen as high-reward and low-risk
3. Insider fraud at banks: Employees access ATM cards for 15 elderly and deceased bank clients

The physical security system of a bank is still more business-critical than cybersecurity, according to Richard Joslin, Senior Director of Sales at Pacom Systems UK. This is but an overview of some of the functions that today’s physical security systems can achieve. They now go beyond what people expect from an alarm system – and this helps to improve the in-branch experience for employees and customers while deterring and catching out criminals – ensuring that your bank’s physical security isn’t a weak link in your overall defence against the rising tide of financial crime.

Banking security with integrated cash management system:  each location needs to have a different security system

Solutions that can integrate easily with other systems will add value to a bank’s security system. By integrating the security system with a cash management system, users can get greater insights into insider fraud and can adapt to emerging technologies and risks more easily.

Having an adaptable and flexible system also increases overall institution security as each branch will have different processes, sensor and alert systems, and access control to navigate. Criminals in organized crime networks will swap intel on how to access different branches and banking systems – but if each location has differing physician security, this lessens the risk of this occurring.

Some solutions can integrate with a building’s lighting systems. This can help to improve energy efficiency as well as deter criminals. When an alarm system is armed, for example, the lights can be automatically turned off. If the alarm is then tripped, lights will go on automatically to spook the intruders. Local police can also be told that if a bank’s lights are on at a certain time, to automatically go and investigate. This can reduce the response time to burglary and catch offenders on-site. Likewise, integration with access control systems can lock intruders in a certain part of the building until police arrive.

Stolen valuables and remote ATMs: Motorway locations can be more attractive for criminals, because they can get away faster

The security requirements of a city center branch will differ from a town center location. Branches at motorway locations can be more attractive due to the ability to make a quick getaway. The business of individual branches will also influence risk, as well as the number and type of resources on-site (for example, if they hold a lot of valuables or cash). Another consideration is the security of remote ATMs and other resources. ATMs are an attractive target for criminals as they are seen as high-reward, low-risk, and have lower penalties if caught compared to branch theft.

Security technology, therefore, needs to be adaptable to many different situations and requirements. Depending on branch procedure, a security system may have to adjust to certain cleaning schedules, cash deliveries, and understand which employees should be on-site, where, and when.

Insider fraud at banks: 62 percent are looking for additional income

The damage from attacks on ATMs in 2017 was estimated at over £150 million, with rural areas increasingly at risk. The number of attacks is predicted to triple between 2016 and 2025.

Then there’s the risk of insider fraud and theft. A Gartner study on insider threats found that 62 percent of insiders with malicious intent are looking for supplemental income – and they can be found at all seniority levels. One high-profile case of this saw JP Morgan Chase employees access ATM cards for 15 elderly and deceased bank clients. Over two years, they stole over $400,000 from accounts by creating bank cards and withdrawing funds from ATM machines.