Banking Safeguards

In 2002, 89 banks reported 47,269 individual losses above the £10,000 threshold, giving an average of 528 losses per bank, according to a survey by the Risk Management Group of the Basel Committee on Banking Supervision. This represents a sharp increase from the 195 individual losses per institution reported by 27 banks in 2000.

As these statistics suggest, in an increasingly electronic world it's becoming easier for fraudsters to mask their activities and cover their tracks. We only have to look at recent landmark cases to see just how easily mistakes can be hidden and losses mount.

However, while banks are becoming more vulnerable to operational risk and white-collar negligence they must also remain vigilant to external scams.

Skimming

Just take a form of credit card fraud called ‘skimming’, where an estimated £400,000 is stolen in the UK each day.

Using a pocket-sized device with a scanning slot to swipe a customer's credit card, a fraudster can copy the information held on the card's magnetic strip. The process takes just seconds to complete. Once the details have been downloaded onto a special machine, they are copied onto a counterfeit card.

At GSS we alert our clients to potential security breaches and monitor existing threats. Our corporate intelligence work on suspected problems is different to that of a conventional auditor in that we focus on where there are anomalies which may point to future trouble.

Assignments have covered:

• Audits of electronic transfers, loan approvals and other vulnerable activities.
• Information and computer security.
• Personnel security.
• Physical and electronic security.
• Training for security staff.

If you would like to discuss banking safeguards and security issues an initial consultation implies no commitment to proceed and our discretion is assured.