After a risk assessment study, a bank with global operations decided to continue doing business in certain regions of the world where identity theft is rampant.
The information security manager should encourage the business to:
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A. B. C. D.B.
While customer awareness will help mitigate the risks, this is insufficient on its own to control fraud risk.
Implementing monitoring techniques which will detect and deal with potential fraud cases is the most effective way to deal with this risk.
If the bank outsources its processing, the bank still retains liability.
While making the customer liable for losses is a possible approach, nevertheless, the bank needs to be seen to be proactive in managing its risks.
After conducting a risk assessment study, the bank has identified that identity theft is rampant in certain regions of the world where it operates. The bank has decided to continue doing business in these regions, and the information security manager has a critical role in ensuring the bank's security posture is maintained.
Option A - Increase customer awareness efforts in those regions Encouraging the bank to increase customer awareness efforts in those regions is a viable solution. This option is recommended to raise awareness among the customers about the potential risks of identity theft, how to recognize it, and how to report it. Increasing awareness will empower the customers to take preventive measures, such as using strong passwords, avoiding phishing scams, and being vigilant about their account activities. This option could also help customers report any suspicious activity promptly, allowing the bank to react quickly.
Option B - Implement monitoring techniques to detect and react to potential fraud Implementing monitoring techniques is also a viable solution, and it complements option A. By monitoring customer transactions in real-time, the bank can detect and respond to potential fraud attempts quickly. This option will also enable the bank to identify patterns of suspicious activity, such as unusual transactions or high-value transfers, and automatically flag them for investigation. The downside is that monitoring techniques can be costly and may result in false positives, requiring additional resources to investigate.
Option C - Outsource credit card processing to a third party Outsourcing credit card processing to a third party is not an effective solution for combating identity theft. In fact, outsourcing to a third-party may introduce new risks, such as data breaches, compliance violations, or loss of control over critical processes. Outsourcing may also result in additional costs, as the bank will have to pay for the services of the third-party.
Option D - Make the customer liable for losses if they fail to follow the bank's advice Making the customer liable for losses if they fail to follow the bank's advice is not an effective solution either. This option could create friction between the bank and its customers and harm the bank's reputation. It also fails to address the root cause of the problem, which is identity theft.
In conclusion, options A and B are the most effective solutions for the bank to manage the risk of identity theft in regions where it operates. The bank should increase customer awareness efforts and implement monitoring techniques to detect and react to potential fraud. Outsourcing credit card processing to a third party and making customers liable for losses are not effective solutions and may introduce new risks and harm the bank's reputation.