The corona virus pandemic has led to a general chaos in 2020 and has exposed companies to many unprecedented compliance challenges across every sector and industry. Keeping up with the digital way of working, trying to keep their employees and assets safe, and ensuring that access to capital remains uninterrupted, has been the main focus of all business enterprises this year.
Compliance Challenges Witnessed During COVID-19
This has exposed them to an increased risk of cyber-criminals and fraudsters. Smaller firms are especially vulnerable, as they try to divert their resources to upkeep of other business processes apart from compliance. As more and more businesses turn to online functioning, it becomes imperative that companies invest in a risk-based compliance monitoring plan.
Rising Instances of Digital Crime
With the advent of social distancing methods and remote working, there has been an accelerated use of online services and digital activity. The widespread disarray and rising anxieties of people have made them vulnerable to criminals who take advantage of the changing patterns of behavior, sense of emergency and panic amongst people. Social engineering tools can be used for money laundering, fake relief schemes, online shopping fraud, or ransomware attacks.
Cyberattacks can cause immediate, far-reaching and devastating impact on organizations, its infrastructure and its employees and customers.
Reducing Risk to Businesses
In a attempt to cope up with the numerous new compliance challenges the pandemic has given rise to, some businesses have shifted their focus away from compliance, a move that has weakened their systems and processes. This move could be intentional, or a side-effect of reduced employees or cost cutting. Whatever the reason, it has made reevaluating cybercrime parameters and scope of suspicious activities a necessity. There needs to be a system that allows for online verification and use of authentication tools.
A key improvement in compliance would be the adoption of enhanced due diligence, adverse media screening, and monitoring and auditing practices for effective compliance. Automated governance risk and compliance solutions can work on accumulated data efficiently and without errors and can bring you a clear picture of the transactions taking place, manage reporting and SARs alerts, as well as fulfill KYC regulations to spot inconsistencies well before time. Businesses need to understand what risks they are facing, update and educate themselves on the evolving risks, and invest in a program that aids them if effectively mitigating them. Our Compliance Activity Monitoring Portal (CAMP) system can not only protect institutions from cybercrime, but also improve the efficiency and effectiveness of their processes.