Small Banks Take a Big Hit from Check Fraud

On June 18th, the Office of the Comptroller of the Currency (OCC) released its Semiannual Risk Perspective for Spring 2024 reporting on the key risks in the federal banking system. The SARP highlighted credit, market, operational, and compliance risks as the key risk themes in the report. As security professionals, we zero in on the operational risks.    The OCC noted that increased digitalization, new and innovative product and service adoption, and third-party collaboration is creating both opportunities and risks. In this ever evolving and complex operating environment, operational risk is elevated as fraud continues to be a significant risk for banks, reports the OCC. As banks work to process checks and other payments safely and efficiently, check and wire transfer fraud (as well as P2P transaction scams) have become more prevalent, underscoring the importance of fraud risk management.    Read More