Bank compliance officers are concerned that emerging payment methods, including virtual and mobile payments and prepaid cards, could be used for financial crimes, according to a survey the consulting firm Fortent Inc. released last week.
In an online survey of compliance officers and risk managers from 30 major financial companies, Fortent found that 52% viewed these new methods as a potential source for identity theft, and 78% expect to see more regulatory interest in them.
Forty-four percent said virtual payments, in which people use real money to purchase virtual currency in online games, could be used for financial crimes, and 28% said they were concerned about misuse of stored-value cards.
Ed Baum, Fortent's chief marketing officer, said in an interview that stored-value cards and virtual currencies offer consumers a high level of anonymity. "Stringent, up-front due diligence in terms of 'know-your-customer' procedures can help minimize risks."