A bank is reviewing its transaction monitoring system and notices a high number of false positives. What should be the next step?

Increasing the threshold may reduce the number of alerts, but it could also result in the bank missing genuine suspicious transactions. This approach addresses the symptom of false positives without tackling the root cause of the issue, potentially compromising the effectiveness of the monitoring system.

Disabling the transaction monitoring system is not a viable solution, as it would eliminate the bank's ability to detect any suspicious activity altogether. This drastic measure poses significant risks to the bank’s security and compliance with regulatory requirements, leaving it vulnerable to fraud and financial crimes.

Outsourcing the monitoring does not inherently resolve the issue of false positives and may introduce additional complexities, such as data privacy concerns and less control over the monitoring process. A thorough understanding of the bank's specific transaction patterns is essential for effective monitoring, which may not be retained through outsourcing.