Fighting Online Payment Fraud with People and Tech
By: Jeremy Quittner
Source: American Banker

Banks face a big challenge in performing the high degree of analysis required under new security rules for payments initiated online. Their options in meeting the challenge include retraining staff and tapping software that learns from customers' spending patterns.

National Penn Bancshares Inc, of Boyertown, Pa. claims to have had significant success fighting fraud in automated clearing house and wire transfers using a mixture of technology and human interaction.

Transaction analysis is "the last and most effective defense we can employ," says Steve Kunkel, senior vice president of operational risk management and loss prevention at National Penn.

Kunkel spoke Thursday in an online presentation sponsored by the security vendor Memento Inc. of Burlington, Mass.

In 2010, National Penn, which has $9 billion in assets and 123 branches, began using a Memento anti-fraud service to look across silos and channels and detect anomalies for ACH and wire transactions as they occur.

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