Lloyds TSB Group PLC of London has agreed to use Employee Fraud Prevention, a new software product from Actimize Inc.
The software monitors employee access to bank systems, triggering alerts whenever someone appears to be accessing information without a legitimate reason to do so.
Amir Orad, the executive vice president and chief marketing officer for Actimize, of New York, said in an interview Tuesday that "employee fraud has always been an issue, from the day employees walked into the branch and had access to a mainframe."
Some of this type of fraud is minor, such as when employees waive fees on their own accounts. But that sort of behavior is "typically a first step in that employee committing more serious fraud later on," so it is important to catch early, Mr. Orad said.
Not all cases are alike, he said. "We have a client where an employee's spouse was in jail, and he was blackmailed" with that information into committing fraud, he said. In other cases, crime rings plant an employee in a bank.
Lloyds is still deploying the software. Actimize announced the software and the Lloyds agreement on Tuesday.
