How Vital Is Information Security Controls in Fraud Prevention?

Posted by asimseo on September 21st, 2022

Fraud Prevention is one of the biggest challenges to the associations across the world. What are the advanced measures that can be explored to insure Fraud Prevention in a more effective manner? What part can Information Security play to enhance the Fraud Prevention mechanisms in your association?  informacao

Traditionally," Information Security" term is associated with Cyber Security and is used interchangeably. Approach from associations, merchandisers, and assiduity experts gave an outlook that Information Security is each about technology related Cyber Security controls only.

Delivering direct business value from information security investment infrequently come up as a precedence or discussion point. At best, it becomes a theoretical analysis of the strategic alignment of Information Security with business. But still, practical effectiveness or perpetration methodologies set up lacking.

nonetheless, like numerous other areas, Fraud Prevention is one of the critical business challenges that Information Security controls can add value to.

Information Security and Fraud Prevention

Information Security community has failed to demonstrate or communicate effective mechanisms in precluding organizational losses from breaches other than cyber attacks. Chancing an Information Security expert with acceptable specialized background and business wit is the most significant challenge the assiduity hassle.

Professionals with governance or inspection background come with threat operation background. Although exceptions noted, utmost of the experts come with theoretical knowledge on technology and does not understand the real specialized challenges. At the same time, the other side of the diapason is the specialized experts who come from an IT background but without an open mind or any exposure to business challenges and prospects.

The right Information Security leader, with specialized moxie and business wit, shall be suitable to link the Information Security controls with business challenges. This alignment is by icing the control acceptability and effectiveness, but wherever possible by linking to business requirements and bournes . Fraud forestallment is one of the direct selling points to demonstrate the value of Information Security to anon-technical followership, including the board members.

Information Security pitfalls and investments to cover from cyber attacks is extremely pivotal, especially considering the current surge of playing incidents and data breaches. But, the significance of Information Security is much further than the Cyber Security controls.

still, a good chance of frauds has some connection with ineffective Information Security controls, If we dissect. It may be due to weakness in people, process or technology controls, associated with precious business data.

illustration

still, it may lead to fraud, If a person or process access or alter the data that he supposed not to. Then the introductory principles of Information Security are traduced, videlicet confidentiality, integrity or vacuity. crucial security control areas of access operation and data operation are considerably pivotal for fraud forestallment.

Although prosecution of frauds attributed to numerous factors, the ever- adding reliance on information security controls are getting significant significance these days.

As in the history, fiscal associations realize this fact further than others. Bigwig trouble operation enterprise that get a lot of business buy- in substantially riveted on this aspect. Fraud Management departments are more interested in the data security controls so that the forestallment and discovery of frauds will be more effective and effective. Security monitoring use cases for fraud discovery is gaining instigation among information security experts.

Abecedarian principles or generalities

In addition to colorful other scripts, causes of fraud can be the following also

Data exposure to a implicit fraudster( Internal/ External- Unauthorized view)- Confidentiality breach/ Impact.

Illegitimate revision of data by the implicit fraudster Integrity breach/ Impact.

Unauthorized damage to data or service by the implicit fraudster so that the genuine druggies can not pierce it on time- Vacuity Impact

Fraud From External Sources- Online Channels

significance of acceptable information security controls to combat fraud take a huge jump when online channels come the fastest and most effective channel of service delivery. Although offline channels also could be the source of fraud and can get impacted, fraud through online channels( including mobile) can be incredibly easier in an anonymous manner and may be potentially destructive.

Cybercriminals target their victims through online channels, as the probability of chancing one is more easier compared to physical means. In addition to that, the identity of the fraudster is easy to hide and extremely delicate to find out after a successful fraud. That gives immense provocation to the real- life culprits to use online channels.

Emails, websites and mobile operations are being used to bait implicit victims. Considering the increased relinquishment of mobile bias and Internet, the probability of chancing a vulnerable target is relatively easy for the fraudsters.

Defrauding the common public and guests of favorite associations including banking enterprises is a common trend. Chances of trusting a targeted fraudulent communication( in the name of a notorious brand) are veritably high. colorful fiscal frauds are being carried out through fake websites, dispatch, and SMS communication pretending as leading associations. Some of the dispatches can wisecrack the smartest of people, by customizing it with an extremely genuine- looking communication. substantially it addresses the victims, by carrying out background checks in advance, using social media details.

Compromising popular dispatch service accounts of the guests or the mate enterprises could be another source of fraud, by poking into the communication between a supplier and client.

At some point of time, the fraudster may produce a fake dispatch account that nearly looks like the original one, with a minor change in the spelling of the dispatch address, and sends instructions to transfer fund to an account that belongs to culprits. numerous associations fall into this trap, due to lack of sufficient processes and mindfulness.

More significant frauds use data exfiltration and cyber spying, where expert felonious gangs use online channels to spread malware and blackmail the victims. These, eventually end up in fiscal and reputational losses in addition to nonsupervisory damages.

Fraud from Internal Sources- Misuse of access and information/ service running

numerous types of frauds can be executed by perfidious staff, especially those with honor access like IT, Finance, and HR workers. Exposure of sensitive information to unauthorized labor force and redundant boons( further than needed)etc., can potentially lead to unwelcome scripts. In the same manner, unauthorized data transfer boons can also be mischievous to the association.

Lack of effective isolation of duties and timely monitoring and discovery of conditioning by the workers( which may include endless or temporary/ outsource) could be a significant weakness in the information security control terrain that could lead to substantial frauds.

numerous of the recent fiscal frauds owe to the conspiracy of workers with internal or external parties. Weakness in access operation, data transfer operation, isolation of duties, and least honor grounded access provisioning are some of the causes of internal frauds( and in numerous cases external fraud also).

Recommendations- How can Information Security Controls help Frauds?

Fraud Prevention

insure to align Information Security Program and conditioning with Fraud Prevention measures in the association

Carry out a Fraud Risk Assessment in the environment of Information Security pitfalls- From Internal and External perspective

Identify, design and apply critical controls needed to cover the association, staff and its guests from frauds- People, Process and Technology Controls. In some cases, it may be just through bettered mindfulness among the people.

insure to have visionary monitoring and operative mechanisms to prognosticate frauds through early warnings.

Formulate" use cases" by collecting intelligence through internal and external sources of information to descry implicit fraud for a timely response.

Focus on icing effective controls on the protection of information from internal and external pitfalls- Confidentiality, Integrity, and Vacuity of the data. Authorized parties only should have access and authority to view and change the information and its status, with acceptable inspection trails.

Develop and exercise incident response plan for handling potentially fraudulent conditioning( due to information security breaches), where fraud operation/ disquisition brigades may need to be involved. In some cases, HR department too, if the implicit fraud attempt includes the involvement of the staff.

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asimseo
Joined: September 9th, 2022
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