Privacy Constraints Are Keeping Banks From Tackling Scams

Technology solutions can help banks fight fraud, but privacy constraints are preventing them from doing an effective job to ferret out scammers, said Karen Boyer, senior vice president at M&T Bank.

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“It’s not that we lack the technology to stop scams,” Boyer said. “The real problem is privacy regulations that restrict how financial institutions share data with each other. Without better data-sharing agreements, we are fighting with one hand tied behind our back.”

Boyer points to Australia’s scams framework, which holds multiple industries accountable. “Scams are not just a banking problem. It’s a shared responsibility across banks, telecom providers and internet companies. The Australian model does a better job of holding everyone accountable rather than putting the full burden on banks,” she said.

In this video interview with Information Security Media Group, Boyer also discussed:

• Why privacy regulations are a greater obstacle than technology in combating scams;
• The benefits of Australia’s shared-responsibility scams model over the U.K. approach;
• The need for cross-industry cooperation to prevent scams at the source.

Boyer, who leads the financial crimes practice at M&T Bank, has more than 20 years of diverse banking experience, specializing in fighting fraud.