Banks face an unprecedented challenge when it comes to avoiding data breaches and identity theft. Thanks to poor economic conditions over the past decade, the past few years have seen an astoundingly high increase in fraud and identity theft attempts. To counteract this threat, banks need to create a more effective financial records management program to protect themselves from potential data breaches, financial losses, and public relations nightmares.
The Downsize Dilemma
The state of the economy has forced numerous banks to cut down on their staff. During these downsizes, many banks have reduced operational spending by cutting costs on the management of financial records and compliance team members. By doing so, tellers and other entry-level personnel members have easier access to client files, critical information, and records that contain financial data, thus making banks more vulnerable to identity theft and fraudulent activity from within their own company.
Financial Records Management – Not a Good Area to Cut Corners
An effective program is critical for all banks, regardless of their size or annual transaction volume. Banks have numerous fraud-related risks that include financial and account statements, debit and credit card numbers, electronic data that contains account numbers, names, Social Security numbers, and other personal information. edrms consultants
Poor control of these records leaves them highly vulnerable to both physical and electronic theft. Once in the hands of thieves, this private financial data can be used to empty bank accounts, destroy credit, and make enormous purchases-just to name a few of the many disastrous effects of not having a secure management plan in place.
Banks cannot escape the fact that they need to cut back on monthly expenditures, but there are options for storing records without increasing vulnerability. Banks can store information in a cost-effective way by enlisting the help of specialized financial records management to prevent unauthorized personnel from accessing confidential financial records. This is especially helpful in preventing disgruntled employees from stealing credit card information or even lifting money right out of customer accounts.
Careful planning provided by trained experts is imperative to protect a bank’s clients. They can create a customized system and store physical records in a safe but accessible way.
In-house records management and security is often not a financially viable option for many banks. Dealing with the threat of fraud and identity theft is easier and more affordable when they outsource this area to an expert that can handle all areas of financial records management, including organizing, storing, moving, and shredding sensitive data.
One of the biggest advantages to outsourcing is that banks no longer have to waste valuable capital on creating a secure, in-house storage system. This eases the financial burden on the bank, which gives it the additional resources to invest in financial records management and protect itself from additional liability costs down the roa