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Identity theft is a chief concern for financial-institution compliance officers, but new forms of payment, including so-called virtual payments, mobile payment and prepaid cards, also pose financial-crime threats, according to a survey from Fortent, a risk and compliance consulting company. The online survey involved contacting compliance officers and risk managers from 30 global, national and regional financial institutions with asset sizes ranging from $5 billion to $1 trillion, Fortent says. In all, 78% of respondents said they expect to see more regulatory interest in new payment products. Asked about emerging financial crime threats, 52% said identity theft is a threat, 44% cited virtual payments in which consumers buy currency for virtual worlds such as Second Life and use it to buy and sell things online, and 28% cited stored-value cards, Fortent says. Asked why products such as virtual transactions and stored-value cards concern them, respondents generally noted that such products can offer consumers a high level of anonymity, Ed Baum Fortent chief marketing officer, tells CardLine. "Generally speaking, stringent, up-front due diligence in terms of 'know-your-customer' procedures can help minimize risks," Baum says.
