Bankersare still weighing how exactly to design fraud and security frameworks as theirconsumer interactions and internal processes increasingly occur in the digitalworld.

Andmany have substantial strides to stay apace the quickly-innovating world of cyberfraudsters, hackers and other online criminals, speakers at the AmericanBanker's 2016 conference said on a topic that is quickly rising as a strategicpriority for many in the financial industry.

As arepository for customer financial and other personal data, banks and otherfinancial institutions are on the front lines of the fight against cyber fraudand online crime.

"It'smuch easier to do things online. Customers know it's easier to do thingsonline; criminals also know that it's easier to do things online," DavidPollino, the deputy chief security officer with , said during theevent, adding that cyber criminals and frauds range from singleactors to large, more sophisticated operations that innovate rapidly and engagein various forms of online fraud. Even low-tech credit card and cash registerfraud networks are formidable in their own way, he argued, because they engagein long-established forms of fraud and marshal significant resources in theiractivities. "[They're] very convincing and have a large workforce and alsohave processes that some banks might envy when it comes to theircustomer-facing sales processes," Pollino said.

Andfraudsters engage in constant probing of other consumer businesses defenses,according to Pollino.

"Weget [notices] all day long through the issuing-bank notifications thatmerchants large and small have been compromised," he said.

Attendeesand panelists suggested a wide range of approaches to data security andidentity authentication, but it was clear that many banks are just nowbeginning to focus on the security and enterprise risks posed by digitalthreats. One attendee said that outside of the largest-cap banks, manyinstitutions have only just begun to zero in on information security and builddedicate data security teams.

ButFrank Abagnale, one of the most famous American con men of all time, delivereda sobering message to attendees during a panel. Abagnale is the subject of thefilm Catch Me if You Can and hasconsulted with the FBI on security and fraud issues for more than four decades.He cautioned that no amount of process work or technological development willgive banks ironclad digital security - as long as they are still staffed byhumans.

"Thereis no technology nor do I believe there ever will be that can beat socialengineering," Abagnale said. "We always have the human element todeal with, so if I can manipulate the human element I'm always going to win. Sosocial engineering is just something we're always going to have deal with,"Abagnale said.