Without question, the federal government wields considerable power over the entire banking sector. However, it is easy to forget that state attorney generals can also exert tremendous force when they choose to do so.

Arguably the position of State Attorney General is one of the best platforms available to build a political brand. Until missteps in his personal life forced Eliot Spitzer a.k.a. the Sheriff of Wall Street, to resign as Governor of New York, the rumor mill had already mentioned “Spitzer” and “President of the United States” in the same breath. Whether Spitzer stood a chance of being elected leader of the free world is anyone’s guess. However, had he done so, many would likely agree that his position as the state attorney general would represent one of the “tipping points”. It is certainly important to note that Spitzer’s popularity stemmed in large part due to his focus on protecting consumer rights by using his platform as Attorney General to target companies that the federal government seemed unable or unwilling to investigate.

Fast forward to 2012, banks are wrestling with the revised FFIEC Authentication Guidance and the specific steps that they need to take to comply. There are few “bright lines”...

Frank Abagnale Jr. successfully performed cons worth millions of dollars by posing as a Pan American World Airways pilot, a Georgia doctor, and a Louisiana parish prosecutor. He did all that in the 60s and his primary crime was check fraud, as documented in the biographical movie, Catch Me If You Can. Imagine what Frank could do in today’s banking environments with all its complex cross-channels.

Today, fraudster’s schemes evolve faster than Frank Abagnales ever did. This consistent evolution of fraud schemes demands that financial institutions audit their fraud detection solutions and scenarios on a fairly regular basis.

Performing a solution audit would determine the level of effectiveness of your institution's fraud coverage. It would identify additional areas of coverage that could be achieved by fully exploiting the existing data, as well as adding new data sources to improve current detection. It would also help prioritize recommendations and ...

Most people who have been on the good side of the Financial Crimes business know – it is easy to become cynical and suspicious of almost everyone. I guess when you are looking for criminal activity all day, you are supposed to have a 'glass half empty’ approach. To my surprise, I have found that many fraud personnel I’ve met are very optimistic…about catching fraud, that is. And, after meeting with several of them last month, I am even more aware of what a collaborative effort fighting fraud needs to be.

At the beginning of the month, Memento had our inaugural Canadian User Group meeting. Almost 30 users from our Canadian customers came together at the Toronto Board of Trade to network with their peers, discuss recent fraud events and ...

Spring has arrived, which means it’s time to put away all the winter stuff and make space for what you’ll need for the new season. Instead of just cleaning out your closets, why not take a fresh look at your organization’s fraud management system and ‘de-clutter’ your scenarios?

Reviewing your list of scenarios is important to ensure that your fraud team is focusing on the highest priority scenarios that impact your bank, and that you are getting maximum value from your enterprise detection system. Fraud schemes and schemers are constantly changing, and enterprise monitoring systems need to keep pace with new trends, government regulations, and loopholes in your bank’s systems.

The first step is to take stock of what you have, and gauge its value. If you are not already maintaining a scenario inventory, consider developing a tracking system that includes the following:

• A clear, written description of the fraud scenario appropriate for business users (a.k.a. the “English description”)
• A description of each of the data fields required to run ...

Notes from Memento's Michael Wlodyka, Fraud Consultant, and Matt Doremus, Sr. Solutions Architect

 
Michael Wlodyka, Memento Fraud Consultant, on Reputational Risk

On day 2 of the BAI Payments Connect 2012 conference, I had the opportunity to attend a very interesting presentation by John Carlson, EVP for fraud prevention and cyber security at BITS, entitled ‘Hardening’ Payment Systems for the Next Generation. In his talk, John highlighted the fact that trust and reputation are two of the most valuable assets that financial institutions have in retaining existing customers and acquiring new clients.

Whether deserved or not, the persistent threats of account takeover, identity theft, check, card, ACH, wire, and mortgage fraud, along with continued insider and elder abuse can lead to a perception of insecurity. In order to effectively combat the increased risk of new channels, players, and products, there is a need for cooperation between and amongst financial institutions and their providers ...