It was recently reported that sensitive customer data of a major bank was compromised by a security breach; 600,000 customers were allegedly impacted. According to Itgovernance.co.uk, February alone had 106 major incidents, impacting over 29 million customer records globally. Closer home, we all experience this growing menace, with senior citizens especially vulnerable. Digital finance has brought with it serious digital crimes. Business-to-business transactions also pose new challenges, be it related to money laundering and terror financing or drug money and other illegal deals.
Banks and other financial institutions spend $214 billion annually on keeping financial crime in check and associated compliance costs. This spending is expected to grow in double digits, especially in areas such as anti-money laundering systems and processes, as the recognition grows that even so-called victimless crimes can help finance drug operations, illegal arms deals and the flesh trade. There’s a battle raging on several fronts. Tax evasion is a big area. For example, according to the US Inland Revenue Service, the US lost almost $1 trillion in tax revenues in 2021. India has seen a formalization of its economy following the rollout of GST, which pushed up tax compliance while revealing a breathtaking extent of evasion earlier.
