Which step can organizations take to reduce electronic funds transfer fraud?

Confirming customer identity consistently is a critical step organizations can take to reduce the risk of electronic funds transfer fraud. This involves implementing robust identity verification processes that may include multi-factor authentication, identity document verification, and various checks to ensure that the individual initiating a funds transfer is indeed who they claim to be. By consistently confirming the identity of customers, organizations can prevent unauthorized access to accounts and reduce the likelihood of fraud occurrences.

This approach not only helps in safeguarding financial transactions but also builds trust with customers, as they feel more secure knowing that their identities are being verified throughout the transaction process. Additionally, maintaining strong identification protocols can deter potential fraudsters who may seek to exploit weaknesses in the financial systems.

The other options presented do not have the same level of impact on reducing electronic funds transfer fraud. For instance, cancelling access only for known criminals does not address the issue of preventing identity theft or fraud by new or unknown individuals. Similarly, enforcing strict password sharing policies may lead to frustration among legitimate users and does not guarantee that access will not be compromised. Lastly, verifying new account applications is crucial but typically focuses more on preventing account opening fraud rather than ongoing transaction security. While it's part of an overall strategy, it does not encompass the entire customer interaction process as effectively