How Vital Is Information Security Controls in Fraud Prevention?

Scams Prevention is one of the biggest challenges to the organizations across the globe. What are the advanced actions that can be discovered to ensure Fraud Elimination in a more effective manner? What role can Information Security play to improve the Fraud Prevention systems in your organization?

Providing direct business value from information security investment almost never arise as a goal or discussion point. In best, it becomes a theoretical analysis of the strategic alignment of Details Security with business. Nevertheless still, practical effectiveness or implementation methodologies found deficient.

Nevertheless, like many other areas, Fraud Prevention is one of the critical business challenges that Details Security controls can also add value to.

Info Security and Fraud Avoidance

Information Security community has failed to show or communicate effective mechanisms in protecting against organizational losses from breaches other than internet attacks. Finding an Info Security expert with enough technical background and business acumen is among the most significant problem the industry encounter.

Pros with governance or exam background feature risk management background. Although exceptions known, almost all of the experts include theoretical knowledge on technology and doesn’t understand the real technical challenges. By the same time, shortage of the spectrum is the technical experts who come from an THIS background but without an open mind or any exposure to business difficulties and expectations.

If we analyze, a good ratio of frauds has some connection with ineffective Details Security controls. It might be anticipated to weakness in individuals, process or technology controls, associated with valuable business data.


If a person or process access or alter the data that he supposed not to, it may lead to fraud. Here the essential concepts of Information Security are breached, namely confidentiality, ethics or availability. Key security control areas of gain access to management and data management are extensively crucial for fraud prevention.

Although delivery of frauds attributed to many factors, the ever-increasing dependency on information security controls are receiving significant importance these days.

Such as the past, financial organizations realize this fact more than others. Insider threat management initiatives that get a lot of business buy-in mainly focussed on this aspect. Fraud Management departments are usually more enthusiastic about the data security controls so that the prevention and diagnosis of frauds will be more effective and effecient. Security monitoring use instances for fraud detection is gaining momentum among information security experts.

Fundamental rules or concepts

In addition to several other scenarios, triggers of fraud can be the following also:

Info exposure to a potential fraudster (Internal/External – Not authorized view) – Confidentiality breach/Impact.

Illegitimate alteration of data by the potential fraudster – Integrity breach/Impact.

Unapproved damage to data or service by the potential fraudster so the genuine users cannot can get on time – Availability Effects

Fraud From External Resources – Online Channels

Significance of enough information security handles to combat fraud require a huge jump when online channels become the speediest and a lot efficient channel of service delivery. Although off-line channels also could be the source of fraudulence and can get affected, fraud through online programmes (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 actually finding one is more easier when compared to physical means. Found in addition to that, the identity of the fraudster is not hard to hide and extremely difficult to learn after a successful fraud. That gives immense motivation to the real-life criminals to work with online stations.

Emails, websites and mobile applications being used to attract potential victims. Considering the increased adoption of mobile devices and Internet, the probability of finding a vulnerable target is quite easy for the hacker.

Defrauding the most popular public and customers of favorite organizations including banking businesses is a common trend. Probability of relying a targeted fraudulent meaning (in the name of a famous brand) are incredibly high. Various financial scams are being carried away through fake websites, email, and SMS communication imagining as leading organizations. A lot of of the messages can fool the smartest of folks, by customizing it with an extremely genuine-looking meaning. Mostly it addresses the victims, by carrying away background checks beforehand, using social media details.

Diminishing popular email service documents of the customers or perhaps the partner businesses could be another source of scams, by snooping into the communication between a provider and customer.

At some point of time, the fraudster may create a fake email account that almost appears to be the original one, with a small change in the transliteration of the email address, and sends instructions to transfer fund to an account that is owned by scammers. Many organizations fall under this trap, due to shortage of sufficient processes and awareness.

More significant scammers use data exfiltration and cyber espionage, where expert criminal gangs use online channels to spread spyware and adware and blackmail the subjects. These, finally wrap up in financial and reputational loss in conjunction with regulating damages.

Fraud from Interior Sources – Misuse of access and information/service handling

Many types of scams can be executed by disloyal staff, especially those with privilege access like IT, Finance, and HOURS Employees. Exposure of private information to unauthorized staff and extra privileges (more than required) etc., could lead to unpleasant cases. In the same manner, unauthorized data transfer rights can even be detrimental to the organization.

Deficiency of effective segregation of duties and regular monitoring and detection of activities by the employees (which may include long lasting or temporary/outsource) could be a significant weakness in the information security control environment that could business lead to substantial frauds.

Most of the recent financial frauds are obligated to repay to the collusion of employees with internal or external parties. Weakness in access management, data copy management, segregation of tasks, and least privilege primarily based access provisioning are some of the causes of internal frauds (and in many cases external scams also).

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