SWIFT introduces new elements to combatting fraud
New elements are part of SWIFT’s Customer Security Programme to protect its community
Combatting fraud is a challenge for the entire financial industry, as cyber-attacks grow in frequency and sophistication. SWIFT’s Customer Security Programme (CSP) helps its customers secure their own local environments, manage risk in counterparty relationships, and protect the entire community.
Robust fraud prevention programmes require the rapid identification of (potentially) fraudulent transactions so they can be investigated, and blocked if necessary. In particular, strong reconciliation and response processes play a vital role in detecting fraud perpetrated through back-office systems.
While many banks rigorously check message confirmations and statements, others may not realise that these practices are the cornerstone of payment operations and can help them avoid falling victim to fraud. Still others may not know how best to respond if suspicious or fraudulent transactions are identified.
A new SWIFT info paper – Mitigating fraud risk through strengthened payment operations – addresses such gaps in knowledge and awareness. The paper underscores the need to examine message confirmations and end-of-day statements and outlines best practices for checking settlement instructions and changing payment instructions. It also explains the correct way to format cancellation instructions when fraud is suspected, in order to increase the likelihood that transactions can be stopped successfully.
Source: SWIFT
