After a risk assessment, what should a bank do to address concerns in regions with high identity theft?

Implementing monitoring techniques to detect and react to potential fraud is a crucial step for a bank to take after a risk assessment in regions with high identity theft. This approach allows the bank to actively identify fraudulent activities as they occur and take prompt action to mitigate potential losses. By employing advanced detection systems, such as anomaly detection and transaction monitoring, the bank can analyze transaction patterns in real time, recognize suspicious behavior, and initiate responses such as alerting customers or blocking transactions. This proactive stance not only helps protect customers but also preserves the integrity of the bank’s operations and reputation.

Other options, while relevant to addressing identity theft, may not provide the same immediate and effective response. Increasing customer awareness efforts can educate customers about protecting their information but does not directly prevent or respond to fraud incidents. Outsourcing credit card processing might transfer certain risks but does not inherently reduce the risk of identity theft; it may also introduce new vulnerabilities depending on the third-party provider’s security measures. Making customers liable for losses shifts the burden onto them, which could harm customer relationships and trust, and does not address the root causes of identity theft or the bank's responsibility to protect its customers.