At Easy Solutions, we spend a lot of time anticipating fraud trends so that we can develop solutions quickly and ensure that our customers are always ahead of the game when it comes to fraud protection. This week, we added and enhanced several features to our anomaly detection solution, DetectTA, which now has the ability to monitor a wider range of transactions and provides increased flexibility in crafting rules and alerts. DetectTA’s extended capabilities result in an anomaly detection solution that’s even easier to use and much more powerful.
Over the last decade, I have spent the majority of my time focused on strategic planning for fraud prevention and fraud program enhancements. During this time, I have met and spoken with countless financial and law enforcement professionals who are facing the challenges of ever-changing fraud environments. Due to the nature of fraud, my programs had to be ever-changing as well. I have taken the time to identify the most reoccurring themes I have seen throughout my travels and wanted to share them with you.
One of the hardest responsibilities to tackle when it comes to fraud management is identifying and anticipating emergent attacks that seek to exploit your security controls. When I was in charge of rooting out fraud at a well-known financial services company, I spent a lot of time and money designing and deploying fraud solutions, as well as establishing proactive mitigation efforts to help identify threats in their planning stages. I know what it’s like to be on the client side of the fraud protection fence, regularly evaluating tools to see which ones are effective and which are a waste of time and money.
It almost seems like a day doesn’t go by without someone reporting the discovery of hundreds of millions of pieces of user-specific information related to credit and debit cards, e-mail addresses, or log-in credentials being sold on underground markets. If these numbers are true, the banks are paying the price for these leaks in a big way.
One of the biggest challenges when it comes to transaction anomaly detection is managing the large amount of alerts and cases that these solutions tend to generate. Since every alert is a possible case of fraud, efficient management is crucial for following up on cases in a timely manner before any attacks can be perpetrated.
FFIEC Guidance published on December 11, 2013 and effective immediately, addresses mounting risk factors facing financial institutions related to social media. The FFIEC states that all financial institutions should effectively assess and manage risks associated with all activities conducted via social media platforms. These risks include compliance risk, legal risk, reputation risk, and operational risk
As the number of electronic attacks grows daily, the Total Fraud Protection® team is pleased to announce the release of the newest version of Detect Monitoring Service (DMS), our proactive anti-fraud monitoring solution. DMS has a completely redesigned dashboard, with a number of interactive charts and graphs that enable users to more efficiently analyze and break down all information related to security incidents, with tickets and alerts rendered graphically in real time.
New features in the redesigned dashboard include:
In light of the Target and Neiman Marcus breaches, many are pointing to EMV “chip and pin” technology as the silver bullet that could have saved Target and its customers a lot of heartache. However, while EMV is a good step forward for card security, it’s inaccurate to say that EMV would have stopped the Target breach.
The Truth about EMV
- EMV would not have prevented the Target breach from happening.
EMV began as a joint effort conceived by Europay, MasterCard and Visa to replace the mechanism to provide customer identifiable information (Account number, CVV, etc.) to the terminal initiating a transaction. Instead of a magnetic strip for this purpose, EMV cards use a smart chip and require the entry of a PIN number that only the customer should know (hence the term “chip and PIN”). Once the information has been passed into the terminal, the transactional process remains the same – the account information is loaded into the terminal’s memory, a transaction frame is built to request authorization, and so on.
As we are in the midst of the largest online holiday shopping phenomena ecommerce has ever experienced, it’s pretty safe to assume that fraudsters are looking for new and even more ways to put a little jingle in their wallets this season and beyond. So in a year where we are seeing data from various sources indicating financial fraud is climbing faster than Santa can slide down your chimney, we have pulled out our crystal ball to make some 2014 Financial Fraud Predictions here at Easy Solutions to help you stay head of the game in the coming year. While these are just predictions, they are based off of some very real trends and data we are seeing here at Easy Solutions:
Mobile fraud will evolve faster than defenses for at least another year. In the last month, the four major US mobile carriers announced that they will begin blocking premium or paid SMS charges, otherwise known as cramming. Around 75% of all existing mobile malware uses this method to monetize mobile fraud. Cutting off this revenue source for fraudsters will accelerate innovation of mobile malware and take more advanced techniques like SMS OOB interception into the mainstream.
Half a Million Americans’ IDs and bank data stolen and sold online – and that’s just the tip of the iceberg
Last week, the Justice Department indicted a 24 year old Vietnamese man with 15 counts of wire fraud, identity fraud, access device fraud and conspiracy charges, for his part in stealing and helping to sell ‘fullz’ packages of IDs online for over 500,000 people. These ‘fullz’ packages include a person’s name, date of birth, social security number, bank account number and bank routing number, and payment card data. Read more