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Displaying 121 - 126 of 126 Payments Risk Management blog posts

  • The Rise of Third Party Fraud

    Thursday, July 22, 2010

    First party fraud continues to be a challenge facing institutions and is, arguably, a necessary evil of doing business for institutions today. However, this also can prove problematic when also trying to balance regulatory and consumer pressure to treat customers fairly. Here the advantage tips in favour of the fraudster: how do institutions manage and treat a customer that they suspect of showing symptoms of first party fraud - fairly. Just look at some of the consumer web forums describing tales of woe where customers or credit applicants have negative registrations against their credit history – purportedly for account misuse or supplying false or misleading information. However, let’s not lose sight of the fact that dishonestly making a false representation is now recognised as a criminal offence under the Fraud Act 2006.

  • Don't Let Card Fraud Ruin Your World Cup

    Thursday, June 10, 2010

    This week marks the start of the World Cup in South Africa and, in preparation, the country has put extra measures in place to protect tourists from criminals. However, given the expected rise in financial transaction volumes during the event, fraudsters will no doubt have made their own plans to target consumers as they spend money on their cards around the country. As a result, banks – both in South Africa and in the consumers’ home countries - will have to be even more vigilant than usual to effectively protect their customers from card fraud.

  • The Stark Reality Behind Phishing

    Monday, May 17, 2010

    If ever there was doubt about the organised nature of fraud and financial crime, the recent report by the Anti Phishing Working Group says that, of the phishing attacks that took place globally in the latter half of 2009, 66 percent were from one group. It has long been known in the anti-fraud community that these groups operate in a highly organised and structured manner – I have even heard of organisational charts being compared, side by side, between a well known fraud operation and a bank: the structures were almost identical position by position from the CEO down to the call center reps. Hopefully these types of reports will make law enforcement wake up to the fact that we aren’t facing a few rogue teens and drug addicts trying to scrape together some cash; these gangs operate very efficiently and often funnel money towards other, more serious pastimes, like terrorism, drugs and weapons. Being able to arrest and convict fraudsters of more than “slap-on-the-wrist” crimes is key to stemming the tide of illicit funding that comes from the various criminal enterprises. It’s time people wakeup to the fact that there are serious linkages between all levels of organised crime and start treating them, and their intent, as a single entity.

  • Don't Underestimate the Online Fraudster

    Wednesday, May 05, 2010

    From the beginning, banks have protected their online banking businesses with basic authentication methods that required users to log-in with a username / ID number and a password to verify their identity. However, fraudsters quickly started to evade these early online fraud prevention methods by obtaining users’ passwords using social engineering techniques, keyloggers, or any number of other tools.

  • Staying One Step Ahead of the Cyber Criminals

    Tuesday, April 20, 2010

    The latest Symantec report suggests that the number of worldwide malware samples increased by an astonishing 71% in 2009 compared to the previous year. According to the report, this increase stems from the growing popularity of easy to use toolkits that novice cyber criminals are using to turn out their own malware. In our experience, banks and their customers are one of the key targets for this new breed of criminal. While customers need to be more aware of online security risks, banks are also doing their bit to protect their customers. The challenge for banks, however, is to remain one step ahead of the criminals.

  • The race against fraud

    Thursday, January 21, 2010

    A recent news story on financial crime caught my attention: “Subramaniam went to great trouble to hide his activity. He seems to have thought that carrying data around on memory sticks and using internet cafes would somehow protect him from scrutiny. He was wrong, says Lemon” (Finextra, 15 January 2010)

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