Archive for the ‘Fraud’ Category

Electronic Communications: A Growing Compliance Risk

Posted on June 01, 2017 by Laura Lam

The 7th annual Electronic Communications Compliance Survey from Smarsh reveals that finaical firms are struggling to keep up with the multitude of electronic communications channels.  More than half of respondents (52%) cited text messages as their current No. 1 source of non-email content compliance risk. About 33% of respondents cited social media communications as the greatest compliance risk, and 8% cited instant messaging. The survey also found that almost half of firms have no oversight or retention of text messages.  “Firms need to leverage new and emerging channels to communicate with their customers and stay competitive, but they’re failing to manage the risk,”…

1.4 Billion Data Records Compromised in 2016

Posted on April 21, 2017 by Laura Lam

Cyber attackers launched 1,792 data breaches in 2016, which led to almost 1.4 billion data records being compromised worldwide, according to the newly released Breach Level Index (BLI) report from security provider Gemalto.  Identity theft was the leading type of data breach last year, accounting for 59% of all data breaches, the report said. More than half of the data breaches (52%) in 2016 did not disclose the number of compromised records at the time they were reported. The BLI is a global database that tracks data breaches and measures their severity based on multiple factors such as the number…

Prime Target: Cybercriminals Set Sights on Tax Pros

Posted on April 04, 2017 by Laura Lam

According to security experts, tax preparers are a special target for cybercriminals.  Tax preparers make perfect targets because their hard drives hum with “personal identifiable information” – such as scans of clients’ driver’s licenses, W-2s and previous years’ returns – that cybercriminals want. Preparers are obligated to protect access to this information, as well as ensure that the data isn’t modified or damaged – but that can be difficult, particularly for smaller practices.  Cybercrime’s global economic impact has reached $1 trillion and spawned a sophisticated industry that is learning to steal more effectively from corporations and Main Street alike. Globally, cybercrime…

Auto Finance Fraud Could Hit $6 Billion

Posted on March 30, 2017 by Laura Lam

PointPredictive, a provider of fraud solutions to banks and finance companies, details a new analysis confirming that auto financing fraud risk has been rising for several years, but remains hidden in credit losses.  PointPredictive estimates the annual value of auto finance originations that contain some element of misrepresentation may be as high as $6 billion in 2017, which is twice as much as 2016 estimates. The analysis revealed that auto financing fraud can be broken into 3 separate categories: Known fraud that finance companies have been able to identify. Hidden fraud that ends up misclassified as early or first payment…

New “Invisible” Cyber Threat for Banks

Posted on March 07, 2017 by Laura Lam

Malicious software, the type criminals use to steal online banking login credentials from customer or employee desktops, has been getting more stealthy and effective over time, as its authors get progressively better at evading antivirus and anti-malware programs. But there’s an emerging generation of malware that’s even sneakier. It’s not only designed to escape detection, it can lurk in computer memory or a legitimate computer tool, where normal security software can’t see it.  Malicious code that runs in memory is called “fileless.”  Such attacks are increasing “because they are much harder to detect than file-based malware,” said Rick McElroy, security…

Online Shoppers at Risk for Identity Theft

Posted on March 03, 2017 by Laura Lam

Fraud reached record highs last year, and online shoppers took the biggest hit. According to a recent report released by Javelin Strategy & Research, in 2016 fraud increased a staggering 40% for identity card-not-present (CNP) transactions. With Americans now making 51% of purchases online, that increase in online identity theft is especially concerning. EMV chip cards have helped.  Chip cards are more secure than magnetic stripe cards during in-person transactions. Chip cards have eliminated the ability for criminals to counterfeit cards and use them in person at brick and mortar retailers, because the chips and new card readers work together to create…

Cybercriminals Target Online Lenders

Posted on February 22, 2017 by Laura Lam

Financial organizations are being increasingly targeted by cybercriminals looking to capitalize on alternative lending and payment models. Although the entire financial services industry is a hotbed for cyber crime, online lenders are particularly vulnerable. They differentiate themselves based on their ability to process loan applications quickly – making them a soft target than some of the larger established banks.  According to the latest ThreatMetrix Cybercrime Report, 1 million cyberattacks targeted online lending transactions throughout 2016, and this number will continue to grow in 2017. The total value of these transactions is estimated at approximately $10 billion. This emerging trend in online lending…

Tax Deductions: Are You at Risk for an Audit?

Posted on January 27, 2017 by Laura Lam

Like it or not, tax season is upon us.  As you begin to itemize your 2016 deductions, are you concerned that your numbers might be large enough to trigger an audit?  Forbes has the numbers that will help you judge the risks. This table shows average deductions, by income level, in 4 categories: real estate taxes, income taxes, interest and charitable donations. A lot of factors enter into the IRS software that determines which tax returns are worth a close look, and the formulas used are a closely guarded secret. But one of the important elements is deductions that are…

Will Banks Listen to the Voice of their Customers?

Posted on January 19, 2017 by Laura Lam

Voice recognition technology is rapidly becoming part of our culture, as Apple, Google, Amazon and Microsoft have invested heavily in their Siri, Google Assistant, Alexa and Cortana voice-based assistants.  Banks have taken notice but grapple with new challenges in trying to work with these voice assistants and securing transactions conducted through them. Some are debating whether to work with them at all. Such challenges mean that 2017 won’t be the year that voice banking takes off. Significant customer adoption of voice banking is 3-5 years away, said Emmett Higdon, director of mobile for Javelin Strategy & Research. Still, banks can’t…