The Importance of Implementing Bank Security Procedures

Bank security is important for a number of reasons; one of those reasons include protecting clients and the bank from fraudulent behavior such as counterfeit money, check fraud, money laundering and much more. Other levels of security includes the level of training within the internal staff. Before being employed, staff members usually go through extensive background checks including criminal and credit checks. Most employers must be fingerprinted and photographed (depending on the state). Since many American corporations face the chances of losing over $250 billion with intellectual property theft alone, it is essential that bank security procedures are carried out to the fullest extent.

With the increase of identity fraud and other fraudulent acts, national bank regulators have recently upgraded several of the security processes and controls. The Gramm-Leach Bliley Act bill was passed by Congress so regulators could establish strict security standards for certain institutions. This is to protect the customer’s privacy and personal information. Despite this new bill being introduced to the public, there are still many problems that exist within the financial institutions. These institutions are getting stricter with hiring information security offices, managers and employees for monetary support.

There are many ways to increase bank security such as; understanding information assets, deterrence, recognizing the importance for security, establishing security policies and procedures, ensuring expertise availability and aggressively engaging in awareness.

There are multiple methods to increasing expertise when planning business strategies with a financial institution. If an idea is implemented ’such as starting a program on the Internet’, a team of highly skilled professionals should have a meeting as to the best ways to set long-term security for the project. If a company is unable to develop this type of talent, there are other alternatives, such as seeking the services of a consultant. Consultants are skilled at avoiding security risk and designing efficient security systems.

Policies and procedures should be established and updated on a regular basis. These policies must be comprehensive to the public and the employees of the financial institution. Security policies should be easily understood with expectations from the team members of the financial corporation. The policy should also establish some form of accountability related to customer and employee behavior. Many financial institutions neglect the establishment of an effective security program which can increase criminal behavior from insiders and outsiders. Deterrence should also be noted by calculating the probability of penalties imposed if a criminal is caught. If the penalties will be higher than the value of the assets, this increases the chances of the bank being attacked. This is why implementing effective bank security procedures is important and essential to the success of a financial institution.

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