How Banks Can Limit Losses From First-Party Fraud

AI Summary

• Financial institutions should implement risk-based controls to limit initial trust for new customers during online account opening. • Effective strategies include establishing customer behavior before full trust is granted.

Texas Relevance

The article does not explicitly mention Texas, TX, TCUD, or any Texas-specific entities. The advice applies to all financial institutions generally.

Original Content

Cadence Bank's Brent Phillips Focuses on Controls for Online Account Opening Financial institutions face rising losses from first-party fraud schemes that begin with online account opening. One of the most effective ways to reduce exposure involves practical, risk-based controls that limit how much trust new customers receive before their behavior can be established.