In recent years, application fraud has become a major problem for U.S. financial institutions (FIs). In 2017, Aite Group recognized application fraud as the second-greatest challenge FIs face in combatting fraud, trailing only account takeover fraud; this trend continues today. By 2020, application fraud losses related to demand deposit accounts (DDAs) are projected to exceed US$636 million, a costly problem indeed.
It was 2010 when John Kindervag, then an analyst with Forrester Research, first wrote about the idea of a zero-trust security framework in which the idea of a network edge or perimeter was no longer the front lines of the cyber battlefield for an organization.
In 2018, hospitals incurred US$42 billion in uncollected debt from patients, an estimated 6% of their revenue. This not only threatens their financial solvency but also signals a dire need for solutions that alleviate the scourge of revenue cycle management and collections. Help is on the way if revenue cycle executives look hard enough, as Aite Group estimates that US$14 billion of these uncollected receivables can be collected. Hospitals just need to be open to consumer-friendly payment products and financing options that create a pathway to collect. However, early attempts to bridge that gap have fallen short of the mark due to inertia as well as healthcare providers’ and hospital revenue cycle managers’ unease of engaging with external partners.
The increasingly complex regulatory environment, along with ongoing technological gains largely propelled by the new emerging industry of fintech, have transformed the very nature of financial fraud and given rise to a new breed of adversary more technologically advanced than in decades past. Over the past two decades, the chief risk officer (CRO) and chief information security officer (CISO) fought different foes on disparate fronts. However, the change in adversarial motives in the cybercrime epoch while still harboring the same anomie has evolved from website defacements over the last 20 years to a US$1.5 trillion global shadow economy equal to the gross domestic product (GDP) of Russia that trades in data as the new commodity—now more valuable than oil.
At this time of year, everyone in accounting, investments, and securities departments who have to close out the end of the month, quarter, and year dread the long days and weekend work. It is a time of high stress for these employees—the pressure is so high, and the fear of making or finding a mistake and of not making the year-end numbers has everyone burned out before the New Year even gets started. I know and understand firsthand because I live with one of these people and have several of them who are great friends. What I also understand even better, again with firsthand knowledge, is that working in these roles within the insurance industry is even worse than in other industries.