COMBATTING CARD & PAYMENT FRAUD SEMINAR – HOUSTON, TX
In June Amegy Bank hosted a luncheon seminar at the Junior League of
Houston. Amegy Bank’s Treasury Management team, along with experts from
TransFirst® and CoalFire®, discussed card and payment fraud trends and
available protective measures. The discussion topics included:
- What Happened During Recent Merchant Data Breaches: Companies previously felt that their card data was secured have been breached, exposing millions of customer records to attackers.
- Changing the Threat Landscape: Skimming card data to create counterfeit cards is the leading driver of card losses. Cyber fraud is escalating with over 200,000 new malware programs created daily.
- Risk Mitigation for Cardholders and Merchants: Improved technology has been developed by card issuers to analyze card spending patterns and detect potential fraud.
- EMV (chip technology currently used in most countries outside of the U.S.): Attendees were made aware that merchants must prepare for a shift in liability at POS terminals in 2015. Cards and merchant terminals must be updated to accommodate the coming change.
- Fraud Prevention Best Practices for Cardholders and Merchants: Companies can deter fraud by utilizing controls in their commercial card program; cardholders can sign up for bank alerts on purchases.
The program concluded with Mary Murray, Amegy’s Corporate Services Group Executive Vice President, providing an overview of current fraud schemes along with insights on fraud. Discussion included:
- Accounts Payable Fraud: Companies receive instructions via email and letter to change vendor payment account information. Some instructions have been fraudulent, and companies have wired payments to fraudsters. To prevent this type of fraud, companies should institute telephone verification (not email verification) with their vendor on any changes to payment instructions.
- Email Hacking: A client’s treasury team received an email from an internal colleague authorized to provide payment instructions to send a wire. Treasury used dual control in initiating and approving the wire on computers protected by Trusteer. When asked to send an additional payment, the treasury area contacted the individual only to find that their colleague’s email had been hacked and that the wire request was fraudulent. All individuals within a company who could send payment requests should install Trusteer to deter email hacking, and companies should consider internal callbacks on wire requests.
- Account Takeovers: While attempting to access AmegyConnect®, one company user with payment authorization rights received a message stating they were locked out and that another user should log into their workstation to unlock access. When another user, with payment authorization rights, logged into the first user’s computer (which unbeknownst to them was infected with a virus), the fraudster swept information from the two users and initiated and approved a wire for $1,495,000 to China. To prevent such fraud, one user should never log into another user’s computer. And if you receive an unusual or unexpected message, contact Amegy Technical Support.
A list of best practices in fraud prevention that includes the use of dual control, positive pay, and Trusteer was distributed. For a copy, contact Treasury Management.
The seminar included valuable educational information and was approved for 1.4 CTP/CCM recertification credits by the Association for Financial Professionals.
Amegy Bank is dedicated to providing your organization with solutions that help mitigate the risk and impact of fraud. The growing threat of cybercrime and fraud is a battle we must combat together by combining effective processes and services. We encourage you to seek advice from your Amegy banker and to discuss solutions that can help protect your business.
We enjoyed seeing those of you who attended the seminar. And according to the many feedback forms, it proved to be a productive and educational session for our attendees. We look forward to continuing our partnership with all of you and assisting with your banking needs.