Combating Payments Fraud Track 

Fighting Fraud on New Fronts and in New Forms

Mobile transactions are an enticing draw for criminals, particularly as mobile devices are increasingly being used for commercial applications. Card fraud meanwhile continues to grow and shows no sign of slowing. How can card issuers respond and what are the best practices for detection and prevention? Recent studies show that financial institutions still struggle with the basics of account takeover and how to address this growing problem This type of fraud continues to evolve as law enforcement and regulatory agencies work with the industry to help combat it. Adding to the mix, insider fraud can be your organization’s biggest threat. What behaviors and trends are associated with this crime and what goes into creating a fraud-adverse environment.

The Combating Payments Fraud track drills down on the newest forms of fraud and the old familiar threats. Learn what’s working and what’s not and how to prevent and detect fraud internally and externally to increase profitability for your organization.

Actionable Take-Aways

Step up your game as criminals move to new fraud fronts and schemes:

  • Where is mobile fraud showing up today and where will it attack tomorrow
  • Monitoring for vulnerabilities as P2P payments advance
  • Latest in the multi-front (channel) war on account takeover
  • Mitigating fraud risk in prepaid transactions
  • Where the Durbin Amendment leaves the payments fraud effort
  • Card fraud issues – chip and PIN
  • RDC fraud and ways to prevent it
  • New strategies to address the billion dollar fraud problem
  • Top 10 fraud schemes and how to counter them
  • Cross channel fraud detection and prevention
  • Cyber threat intelligence
  • Growing problem of account takeover
  

Track Sponsored by:

    Guardian Analytics

Complimentary Whitepaper from Guardian Analytics:

FFIEC Online Banking Security Readiness Study – Executive Summary
This December 2011 study reflects what financial institutions are doing to meet the FFIEC’s 2012 deadline for improving online banking security. Findings cover overall business drivers plus specific action related to risk assessments, anomaly detection, customer education, and technology investments.

  1. Prepaid Card Fraud - Recent Trends in Prevention, Detection and Regulation

    Monday, March 12
    9:45 AM - 10:45 AM

    Elizabeth (Cindy) Baltierra, Regulatory Policy Project Officer, FinCEN
    Michael J. McKeown, Supervisory Special Agent, Cyber Division, FBI
    R.B. "Skeet" Rolling, Chief Operating Officer, ITS Financial Licenses, Inc.
    Moderator: Kirsten Trusko, President, Network Branded Prepaid Card Association

    This session will explore the landscape of the legitimate and illegitimate uses of prepaid cards, evolving fraud schemes and the investigative challenges associated with them, and the existing and anticipated regulatory framework governing their use. Panelists will review product offerings, recommended best practices for distribution and fraud prevention, fraud trends and recent regulatory developments.

    • Learn how law enforcement, regulators and issuers are responding to the constantly evolving fraud landscape
    • Hear a discussion of industry best practices in fraud prevention and detection
    • Learn how recent regulatory changes will impact the prepaid business and help combat fraud

  2. Traditional Tools and Technology, too: The Battle Against Account Takeover

    Monday, March 12
    9:45 AM - 10:45 AM

    Cathy Davis, Vice President, Fraud Services, Comerica
    Sam Romano, Vice President, Major Case Coordinator, Regions Bank
    Silvia Sarra, Vice President, Manager of Loss Prevention Systems, Sovereign Bank

    Account takeover (ATO) takes its toll not only in dollar losses but in loss of reputation and relationships with consumer and business customers who may battle the bank over who is responsible. Today’s financial institution fraud mitigation managers need to resist takeover assaults from traditional methods and those that arrive via cyberspace. The panel will discuss responses to:

    • Traditional, manual methods for retail ATO --address changes, account name additions, replacement and/or new debit/credit cards, check orders
    • Online/web methods for retail ATO -- authentication takeover with credentials, fraudulent bill payments, ACH draw to fund accounts, online account opening
    • Traditional, manual methods for business ATO -- bookkeeper fraud; payroll fraud; payables fraud; stealing client names, addresses, bank account information from payroll files for ID theft; law firm debt collection schemes
    • Online/web methods for business ATO -- malware/man in the browser attacks aimed at business online web applications with ACH/Wire; changing privileges/entitlements; changing account numbers for payables without changing the payee name

  3. Mitigating the Emergence of Fraud in P2P Payment Innovations

    Monday, March 12
    11:00 AM - 12:00 PM

    Ori Eisen, Founder, Chairman and Chief Innovation Officer, 41st Parameter
    Amir Sunderji, Senior Vice President, Risk & Payments, Cash Edge (Fiserv)

    Additional panelists to be announced

    The U.S. is beginning to see the P2P space heat up with a steady stream of new commercial mobile and web deployments. As online banking has become more mainstream, consumers are more comfortable making payments using PCs, mobile phones and even tablets. As a result, consumers are demanding electronic alternatives to cash and checks for informal, low value P2P payments. As new business models and enabling technologies for P2P payments emerge, how will industry participants and regulators work together to detect and mitigate fraud and risk in these new payment services?  In this session, presenters will discuss the current landscape for P2P payments, including:

    • Descriptions of the business models for recent trials and deployments
    • Discussion of potential vulnerabilities in emerging P2P payment services
    • Risk management initiatives financial institutions should implement as a countermeasure against fraud and risk losses

  4. In Search of Excellence: Automation in the Fraud Shop

    Monday, March 12
    11:00 AM - 12:00 PM

    Silvia Sarra, Manager of Loss Prevention Systems, Sovereign Bank
    Glen Ulrich, Senior Vice President, U.S. Bank

    As transaction volumes and channels grow and resources shrink, banks need to be prepared to continuously improve the protection of payment systems. This panel will address how financial institutions of all sizes are improving operational efficiency, fraud detection and customer experience.  You’ll learn some of the tricks our panel of experts used in their drive for excellence, from leveraging best in class software to using good old fashioned ingenuity. You’ll hear specific examples of fraud operation improvements you can consider implementing in your own financial institutions.

    • Specific examples of fraud operation improvements in various areas of fraud prevention
    • How these leaders determine the best areas to invest in for improvements
    • How these leaders gain approval for improvements, even during tough economic times

  5. Mobile: Evolving Channel, Evolving Risk

    Monday, March 12
    2:15 PM - 3:15 PM

    Subra Kumaraswamy, Chief Security Architect, eBay Inc.
    Bradley Scott, Director, Product Management, Mobile Services, Fiserv
    Laura Mather, Founder, Chief Strategy Officer, Silver Tail Systems, and Managing Director of Policy, Anti-Phishing Working Group

    As the mobile channel evolves, it creates changes in the risk paradigm as to how institutions secure transactions and distribute customer products. This session will explore the current and evolving threats posed to mobile banking and mobile payments and explore recommended risk controls. An overview of topics covered includes:

    • Risk in mobile payments vs. mobile banking
    • How consumer use and complexity of the mobile channel has grown compared to internet use
    • Risks associated with mobile as a banking channel
    • How institutions can look for transactional trends associated with mobile fraud

  6. Enhancing Collaboration with Law Enforcement Agencies

    Monday, March 12
    2:15 PM - 3:15 PM

    Melissa Horvath, Supervisory Special Agent, FBI
    Terry Thornton, Senior Vice President, Fraud Services, Comerica
    Moderator: Kim Duncan, First Vice President, Enterprise Fraud Management, SunTrust

    As the sophistication of financial crimes increases, so does the need for financial institutions and law enforcement agencies to work closely together to identify trends and investigate and prosecute the fraudsters committing the crimes. Since sharing sensitive information in a timely manner is crucial in preventing and investigating fraud, it is important that a relationship of trust exist before an incident occurs.This session will provide tips and recommendations for institutions to establish relationships with their state and local agencies and provide an opportunity for participants to discuss challenges that may be addressed at an industry-wide level.

  7. Fighting Insider Fraud from the Inside Out

    Monday, March 12
    3:30 PM - 4:30 PM

    Shirley Inscoe, Fraud Management Consultant
    Jodi Pratt, Principal, Pratt & Associates

    Insider fraud is not a problem that can be solved by technology alone. Achieving the highest level of deterrence possible requires a holistic program of corporate diligence in policy, practice and automation. This session will discuss:

    • How to create a strong ethical and anti-fraud culture that makes it clear from the first day of employment that the company does not tolerate fraudulent insider activity, including the need for corporate programs to aid employees in personal distress
    • The importance of new hire candidate screening programs and rechecks to identify those with a history of unacceptable employment behaviors
    • Why training for supervisors on how to recognize suspicious behaviors or situations is still critically important
    • How technology can undergird the anti-fraud environment to identify activities that can help direct a company to internal hot spots that may not be noticeable visually

  8. To Infinity and Beyond: Toward a Secure Cyberspace

    Tuesday, March 13
    9:45 AM - 10:45 AM

    Nicole Muryn, Program Manager, Regulation, BITS/Financial Services Roundtable
    Moderator: Doug Johnson, Vice President, Risk Management Policy, American Bankers Association

    From enhanced privacy protections to national data breach standards to a completely new cyber security overlay, cyber legislation is hot. Or is it? Variations of these proposals have been around for several, and in some cases many, years. And the agencies, including the Consumer Financial Protection Bureau, are also engaged. And clouding it all is Durbin. This session will discuss recent legislative and regulatory initiatives involving fraud and cyber security and gaze into the crystal ball regarding what the future might bring, including:

    • The implications of a national data breach standard
    • The impact of the administration’s cyber security proposal
    • What CFPB’s role might be in privacy and security regulation

  9. Combating Payments Fraud Peer Group Discussions

    Tuesday, March 13
    11:00 AM - 12:00 PM

    Peer group sessions bring you together with operations, technology and payments managers from institutions comparable to yours. In the peer group session, you determine the agenda as you pursue your institution’s specific information needs with the help of expert facilitators.

    Financial Institutions Less than $10 billion in assets

    Facilitators:
    Michele Cantley, Senior Vice President, Information Security, Regions Bank
    Heather Wyson, Senior Director, Risk Management Policy, American Bankers Association

    Financial Institutions Greater than $10 billion in assets

    Facilitators:
    Kim Duncan, First Vice President, Enterprise Fraud Management, SunTrust Bank
    Shirley Inscoe, Fraud Management Consultant

  10. Are You Really Who You Claim to Be? Improving Online Authentication

    Tuesday, March 13
    2:15 PM - 3:15 PM

    Mike Fowkes, Senior Vice President, Fraud Prevention and Security Analytics, Zions Bancorporation
    Douglas Foster, Bank Technology Analyst, Office of the Comptroller of the Currency
    Tiffany Riley, Vice President, Marketing, Guardian Analytics
    Moderator: Doug Johnson, Vice President, Risk Management Policy, American Bankers Association

    Innovations in retail payment service offerings today require a more robust and comprehensive approach to risk management.  As fraud schemes become more sophisticated and complex, taking measures to combat illicit activity early through authentication and account monitoring are increasingly imperative. How will industry participants address the hardware and software advances necessary to meet the new FFIEC guidance requirements? In this session, presenters will discuss:

    • The enhanced regulatory examination expectations contained in the guidance
    • What financial institutions need to consider when preparing for an examination
    • The impact the supplementation guidance will have on risk management strategies for customer authentication
    • Strategies for implementing a layered-security approach

  11. As the World Shrinks: International Payments Fraud

    Tuesday, March 13
    3:30 PM - 4:30 PM

    Jim Resmer, Senior Vice President, and Head of Liability Risk Management, BB&T
    David M. Nelson, Cyber Fraud and Financial Crimes Section, FDIC
    Andrew Bonillo, Principal Consultant for the Investigative Response Unit, Verizon Investigative Services

    Payments fraud has become a bona fide international issue for financial institutions of all sizes. As international payments volumes are growing, there are also increased fraud threats originating from outside the U.S. borders directed at our payment systems. International fraud incidents are occurring in all our payment systems, including check, ACH, cards and wire transfers. Attendees will hear specific examples of fraud from recent schemes as well as what is being done to try to prevent more of the fraud directed at our payments systems from sources around the world.

    • Specific examples of recent payment fraud schemes
    • Current initiatives to curb fraud originating from outside the United States through prevention and investigative measures
    • Types of monitoring that may help detect and prevent similar fraud in financial institutions

  12. Navigating the Seas of Card Fraud Risk

    Wednesday, March 14
    9:45 AM - 10:45 AM

    Christy Haley, Fraud Analyst - Card Services, American Airlines Federal Credit Union
    Doug Kinsel, Card Strategist, Card Services Division, Bank of the West
    Rakesh Mirajkar, Director, Fraud Strategy and Analysis, Capital One Financial Corp.
    Moderator: Mike Urban, Director, Portfolio Management, Financial Crimes & Risk Management, Fiserv
    Additional panelists to be announced

    This session will explore the path to mitigation of card fraud through topics such as management of card compromises, the block and reissue process, use of metrics in management of card losses and what the future holds. Join expert bank panelists as they discuss:

    • How criminals have learned to fly under the radar by moving to smaller, more frequent compromises
    • Where losses are showing up – especially card not present, bust-out and prepaid fraud
    • Block and reissue – balancing client impact and potential loss
    • What should we measure, why should we measure it and now that we have the data, what do we do with it
    • Mitigation techniques and tools – best practices for preventing and mitigating card fraud
    • Where the card space is moving -- contactless, EMV and more

  13. Changing Challenges in Check Fraud

    Wednesday, March 14
    11:00 AM - 12:00 PM

    Donna Turner, Senior Vice President, Global Fraud Policy Executive, Bank of America

    Much industry fraud prevention focus has moved towards electronic payments. But at slightly more than $1billion in losses per year, check fraud continues to be a major loss category and will be for the foreseeable future. Changes in checks and check processing have created new fraud risks and have also created new fraud prevention opportunities. This session will update both experienced check fraud managers as well as newcomers on today’s check fraud issues and opportunities. The following areas will be covered:

    • How senior management is incorporating Day 2 fraud detection into its plans for Day 0-1, real-time payment processing in the future
    • What existing and planned technologies are being viewed as part of the check fraud reduction program
    • How check fraud has adopted and resisted change since the industry’s evolution to an image processing and electronic payments environment
    • How image-based technologies and improved analytics can be used to reduce false positives and find frauds that are getting past today’s systems