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Displaying 121 - 130 of 133 Payments Risk Management blog posts

  • Direct Debit Fraud at an All Time High

    Tuesday, November 23, 2010

    It is worthwhile remembering that there is actually more than one victim involved in Direct Debit fraud. The Paying Bank executes the payment against a fraudulent direct debit mandate, and the Collecting Bank receives the fraudulent payment, whose customer provides goods and services – for simplicity let's assume they are in fact legitimate in the first place.

  • Getting One View of Financial Crime

    Wednesday, October 27, 2010

    Anyone who has worked in a bank, or has spent any length of time working with them, knows that technology silos are all too commonplace. Many banks have one system to process debit card payments, another for credit, a third for online banking, and the list goes on. The same applies for fraud prevention and detection, where many banks aren't yet taking a true enterprise view of a customer but instead trying to identify fraud on individual channels, which inevitably makes the detection slower and less accurate - for when fighting financial crime, information and knowledge really is power.

  • Wire Transfer Fraud who is Responsible

    Friday, October 22, 2010

    I recently wrote about the risks that banks face with respect to the alarming scale and sophistication of today's wire transfers. Related to this is the issue of acccountability and responsibility.

  • Don't be discouraged from online banking

    Wednesday, September 29, 2010

    The news that UK police have arrested 19 people in connection with the theft of millions of pounds from online bank accounts shows the lengths to which criminals will go to commit fraud, and the PCeU must be congratulated on breaking this criminal gang. However, it is important that stories like this don't discourage consumers from banking online. As an individual there are a number of steps that people can take to help protect themselves from fraud - including never clicking on suspicious links in emails or on websites that could download this type of malware to their computer; regularly running anti-virus software; always checking statements; and reporting anything suspicious to their banks.

  • Internet Banking Faces A New Threat

    Monday, September 27, 2010

    The recent announcement of the multi-channelled Zeus attack on a user’s internet banking account is an interesting hypothesis and surely will not be the last when it comes to beating the ever advancing online banking systems. The attack method currently seems to use the mobile phone as a forwarding device for any one time password that is delivered to the customer. It’s unclear whether or not the mobile phone hack would hide the incoming SMS from the customer, however if it doesn’t, then if banks ensure they include relevant transaction details in the SMS - amount, and beneficiary - it could allow the legitimate customer to detect that something has gone wrong prior to money being lost.

  • Understanding Today's Wire Transfer Risks

    Saturday, August 28, 2010

    While the rise of wire transfer and ACH (automated clearing houses) fraud is not news, the pure acceleration rate, scale and sophistication of corporate wire and ACH fraud is alarming. For example, the FBI recently took the step of issuing a cyber security advisory in response to the growth of unauthorized and fraudulent multi-million dollar wire transfers from business and government entities to overseas locations.

  • The PFM Debate

    Tuesday, August 24, 2010

    According to new research from Fiserv Americans prefer to access personal finance management (PFM) tools through banking Web sites, with security concerns trumping the advantages, such as account aggregation, offered by third party providers.

  • 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.

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