Business is based on risk. The risk of investment that may not have a return, the risk of products that may not find a market and the risks of hiring the wrong people for the job are all parts of the picture. Insider fraud is one of the biggest risks many companies—especially financial organizations—can face. There are several defenses on hand to combat this problem, but one of the biggest potential protections may be one of the most unexpected: human resources.
Along the subject of derision with employees, human resources may be one of the best defenses against insider fraud there is. Banks have long focused on their information technology to provide protection against fraud—firewalls to prevent unauthorized access, password protection to protect payment systems, and similar measures—but what is to be done when the person performing the fraudulent, corrupt or otherwise unauthorized actions is authorized to be in the system?
Electronic protections can defend against outside access the same way a locked front door can protect against home invasions, but when someone has the house key, well, that's a different matter, and a matter for human resources to shine... Read More