Archived News

Study looks at Millennials’ leading behaviors and attitudes, presents insights and suggestions for community banks

An October 2014 paper—2014 ICBA American Millennials and Banking Study—details surprising findings from a nationwide study by the Independent Community Bankers of America® and The Center for Generational Kinetics LLC. The survey results indicate, among other things, that as a group, Millennials are driven by entrepreneurial ambitions and eager for financial education.

The paper, which is accessible online to ICBA members, summarizes the study results. Further, it lays out strategies and action steps for community banks seeking to engage and serve Millennials. To download the paper, visit the Press Room at Log in and click on News Releases. (The study was released October 15, 2014.)

Defend your bank against hackers: Verify your originators
A number of banks are reporting that their customers’ emails have been hacked. Hacking can trigger a chain of events aimed at defrauding financial institutions. The most effective precaution your bank can take is to completely and consistently follow best practices. The following story illustrates why.

Bank XYZ receives an email that appears to be from its good customer. The email instructs the bank to wire funds to a beneficiary in a foreign country. An employee at Bank XYZ, relying on the email alone for authorization, wires the funds according to the instructions in the email.

What went wrong in this example? The good customer’s email had been hacked. The emailed wire request was sent by a fraudster in a distant country, and the funds are long gone by now.

And because the employee at Bank XYZ failed to call the customer to confirm the originator’s identity, it’s Bank XYZ that suffered the loss.

Unfortunately, U.S. financial institutions have incurred large financial losses as a result of this type of fraud. We urge you stress the importance of always making a call-back to your customer to verify any faxed or emailed wire transfer request before releasing payment. Whether your bank uses passwords or PINs to verify the identity of customers, following this step without exception will help safeguard both your customer and your bank.