ABA Banking Journal - May 2010 - (Page 20)
tech topics? ? |? ?deposit?account?survey
Fraud taps the middleman
ABA survey finds criminals now bilk banks through their customers
make use of skimming technology that compromises ATMs. Many involve outreach to bank customers. The attacks vary,” says Yao, “yet in general, they are being done by organized gangs in other countries and can be difficult to pursue.” Yao also indicated that even the smallest community banks needed to think proactively about their response to fraud. Hit the weakest link Online exposure is certainly a factor, but another way to view the problem in 2010, is to think of the unwitting customer as a possible vector of attack. Traditionally, fraud perpetrators aimed at banks directly, trying to establish relationships before bilking them by check kiting or other means, according to Tom Haller, vice-president, fraud detection, M&I Bank, Milwaukee. Now, bad guys with slick ideas are often working indirectly, targeting legitimate small businesses and individuals with “opportunities” that hide a financial sting. “The economy is definitely a contributing factor,” adds Haller, who recently gave a presentation on the research findings. “Someone who is desperate for employment—even parttime income—might respond to an online ad for a mystery shopper or work-at-home plan and not realize they, as the legitimate customer, will become the barrier between the fraud perpetrator and the bank. So the victim deposits a fraudulent check and then wires a portion of those funds back to the criminal in response to instructions. The bank, meanwhile, has been dealing with activity on a legitimate customer account.” While the scripts and methods vary, Haller explains, the psychology is the same: trick
ankers are increasingly concerned about customer victimization scams, signature debit card fraud, and fraudulent check deposits, the biennial ABA Deposit Account Fraud Survey found. Attackers’ sophistication and the potential for big dollar losses in these areas should have bankers on red alert. “Generally, frauds committed in recent years are more complex,” says Jane Yao, vice-president and director, Benchmarking and Survey Research Group with the ABA. “Some schemes involve account takeovers—malware placed on bank technology to lift customer data. Some
20? |? ABA BANKING JOURNAL? |? may?2010
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