Crypto Banks: The Security Road AheadIDC’s James Wester on Developing Ways to Battle Fraud
Crypto banks that handle crypto assets need to develop new ways to track suspicious activities, such as money laundering, says James Wester, research director, worldwide blockchain strategies, at IDC, a technology research and analysis provider.
See Also: Determining the Total Cost of Fraud
“The current system of ‘know your customer’ or KYC is not as rigorous in digital banks," Wester says. "AML, risk and compliance still haven’t been done particularly well, since these banks are relatively new. So the main challenge for these banks is to learn a whole new way of watching for suspicious transactions and then tying it back to the right regulator."
In a video interview with Information Security Media Group, Wester discusses:
- The evolution of crypto banks;
- The security challenges for these banks;
- The security technologies these banks leverage.
As research director, worldwide blockchain strategies, at IDC, Wester examines the technologies, architectures and concepts behind blockchain and how they are being applied to financial services, manufacturing, energy, government and healthcare.