What method can a bank manager implement to minimize the risk of EFT fraud?

Sending a welcome letter to verify customer addresses is a proactive step that a bank manager can implement to minimize the risk of electronic funds transfer (EFT) fraud. This method allows the bank to confirm that the address on file for the customer is correct, which can help to ensure that any correspondence related to the account, including sensitive information such as PINs and account numbers, is going to the intended recipient.

By verifying customer addresses through the welcome letter, the bank also establishes an initial line of communication that builds trust and allows for the detection of any discrepancies. If a fraudster has managed to change an address without the bank's knowledge, the notification can serve as an early alert to potential fraudulent activity.

Other methods, such as combining access device issuance responsibilities or using the same method to communicate PINs and account information, carry a higher risk of exposing sensitive information or creating opportunities for fraud. Mailing PINs and account information together similarly heightens the risk that such data could be intercepted, mishandled, or diverted by unauthorized individuals. Therefore, the welcome letter serves as a simple but effective precautionary measure against EFT fraud by ensuring that the bank has up-to-date and accurate customer information.