ABA Banking Journal - December 2013 - (Page 18)
more fraud risk
criminals exploit the tension between providing anytime/anywhere
service, and maintaining security
ross-channel fraud is the
term of the moment describing how sophisticated criminals take advantage of the increasing
number of avenues available to them
to carry out their illicit schemes.
Crooks have always worked hard to
find gaps in bank defenses to exploit,
but with so many ways for retail and
business customers to conduct their
banking business now, there are more
gaps than ever.
Fighting cross-channel fraud
involves a two-pronged approach.
ABA BANKING JOURNAL
First, efforts are needed to provide
greater education and awareness
of fraud dangers to customers and
bank employees. Second, increasingly
sophisticated technological tools are
needed to improve authentication
and otherwise deter cyberthieves.
Views of the threat
Catherine Lew, vice-president of
GlobalVision, ticks off a sobering
list of frauds banks face. It includes
check kiting as well as check, deposit,
ATM, ACH, wire, debit card, credit
card, identity, online, loan, employee, and accounting fraud. The list, of
course, could go on much longer.
All a potential thief really needs to
steal are a legitimate customer's user
ID and password-and sometimes
not even those. Once in a customer's
online banking account, they could
access that person's home equity line
of credit, for example, transfer funds
to the customer's checking account,
and then surreptitiously withdraw
them from an ATM.
Cross-channel fraud can be highly
By John Ginovsky, contriButinG editor
Table of Contents for the Digital Edition of ABA Banking Journal - December 2013
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ABA Banking Journal - December 2013