Tag Archives: Fraud

Fraud & Security Are Your Fraud Alert Replies Being Spoofed?

SMS screen with fake response to bank inquiry
Mar012017

As banks try to improve customer experience, reduce fraud and cut operational costs through interactive SMS, criminals have moved in to take advantage of the channel. The latest fraud scam involves ‘spoofing’ CLI (calling line identity) numbers to respond to SMS fraud alerts intended for customers. “Spoofing” SMS or texts might seem like something teenagers would do, perhaps sending fake texts on Valentine’s Day appearing to be from someone else. Instead, what’s happening is more sinister. If a credit/debit card transaction is deemed as suspicious, banks can alert customers through SMS, as well as through automated voice, mobile application push notifications and emails. If the transaction is genuine, the customer simply needs to respond to the SMS to confirm this, without actually having to speak to an operator in a call centre. What the fraudsters are doing is making a fraudulent transaction using a compromised card and then successfully ‘spoofing’... [Read More]

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Fraud & Security Stamping Out Financial Crime in Kathmandu

Feb132017

It’s not often that we enter a greenfield market that is just on the cusp of significant growth, but earlier this month FICO announced its entry in the Nepalese financial market. Nepal is looking to grow its economy and the government recently called for enhanced risk management compliance capabilities to help combat cases of financial crime in the country. “There is clear evidence that economic and financial crimes are some of the fastest growing offences globally,” said Dr. Chiranjivi Nepal, governor, Nepal Rastra Bank. “In Nepal, we can ill afford for these activities to drain our economy or to destroy business and banking confidence. It is therefore imperative that we match the technologies of sophisticated organized criminal groups, with advanced analytics to help banks closely monitor the vast volume of financial transactions they handle on a day-to-day basis.” With the perspective of regulatory compliance turning increasingly global, the Nepalese banks... [Read More]

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Analytics & Optimization My Keynote World Tour Wrap-Up: “Analytics Will Rock You”

Dr. Scott Zoldi
Jan302017

In my role as FICO’s Chief Analytics Officer, one of the most exciting parts of my job is being asked to speak at industry and customer events all over the world. It’s truly an honor, and a fascinating opportunity to see, hear and appreciate the analytics topics at the top of audience members’ minds. One thing is for sure: analytics are rocking every corner of the world we live in, and audiences across industries are eager to learn more. Analytics rock our assumptions  Predictive Analytics World/New York: I was thrilled to keynote at this event, which focuses on analytics across the broad swath of financial services. I talked about using the FICO fraud data consortium to determine when data shifts can invalidate the models and, more menacing, when these shifts reveal subtle new fraud patterns that can indicate the work of fraudsters and cyber criminals, who know how to go... [Read More]

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Fraud & Security A New Crime-Fighting Partnership Targets CNP Fraud

Batman and Superman
Jan252017

As much of our lives and our spending has gone online, the criminal’s life has become exponentially easier and the risks of getting caught exponentially smaller. If I can capture enough information about you through your naivety — such as getting you to respond to a phishing e-mail, or through your lack of risk awareness by capitalising on your lack of up-to-date anti-malware — then I can “borrow” your credentials and re-use them without you knowing for hours, days, sometimes weeks or even months. And the chance of the trail leading back to me? Miniscule! FICO is the longest established and most respected defence against credit card fraud, with more than two-thirds of the world’s credit card payments protected by FICO® Falcon® Fraud Manager, which evaluates every card transaction in speeds faster than the blink of an eye. Despite Falcon’s success, though, some fraudulent transactions – and especially those where... [Read More]

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Fraud & Security 4 Payments Predictions for 2017 – Mobile, Fintechs and EMV (Still)

Psychic office
Dec142016

It’s predictions time again. And while I was correct that 2016 did turn out to be the year of bad analytics—see the ultimate illustration below—this year I’m doing something different: I’m predicting what won’t happen in the coming 12 months. The past year perhaps held no analytic surprise greater than the 2016 US Presidential election. Source: New York Times Let us move on to 2017. 1. Prediction: There will be no clear winner in the mobile payments wars A plethora of payment apps emerged in 2016, further upping the already densely populated payments landscape. Launches included Wal-Mart Pay, CVS Pay, Kohl’s Pay and CakePay (my personal favorite), to name just a very few. These apps are follow-ons to Apple Pay, and while many of them aren’t quite as good, that hasn’t stopped the stream of new entrants. Despite consumer confusion and high levels of market fragmentation, the payments landscape is going... [Read More]

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Fraud & Security Four Tips to Protect Your Phone From Hackers

Hacker message with ban symbol
Nov082016

Wash your hands. Brush (and floss) your teeth. Don’t reply to emails from Nigerian princes asking you to accept a wire transfer. These are just a few of the lessons we learn as kids, and adults, to develop good hygiene: “conditions or practices conducive to maintaining health and preventing disease, especially through cleanliness.” When I read about people infecting their Android phones with Gugi––a Trojan malware that steals user credentials when consumers log into mobile banking apps––by clicking on a link in a random text message, it’s clear to me that mobile phone users are in need of some security hygiene lessons. Here are four ways to keep your mobile phone safe from malware and hackers: 1.   The most basic: Don’t click on clickbait links in marketing text messages from senders you don’t know––even if the message promises you something really great, like a free cruise, an 80-quid coupon or a... [Read More]

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Risk & Compliance New York Proposes Major Changes to Cybersecurity Regulation

Nov012016

These days, cybersecurity is a hot-button issue in policy circles. Look no further than the US presidential debates, where our two candidates have highlighted the need to address hackers, security breaches and even foreign nations that may be using sophisticated cyber tactics to influence the outcome of the upcoming November elections. The pressure to get policies and systems in place to confront these threats is real. Some policy leaders, like those in New York, are not deferring to the federal government to take the lead. On September 13, the New York Department of Financial Services (NYDFS) proposed first-of-its-kind cybersecurity rules covering a wide range of banks, insurers and financial services companies under its jurisdiction. The issuance of the proposed regulations follows a series of industry surveys and discussions with its regulated entities over the course of several years that provided insights on their cybersecurity programs, related costs and future plans.... [Read More]

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Fraud & Security Channel NewsAsia Video: Online Gaming—New Avenue for Money Laundering?

channelnews-asia-video-online-gaming-money-laundering
Sep262016

Singapore Tonight, the evening news program of Channel NewsAsia, recently aired a story on money laundering in online gaming. It highlights how criminals, attempting to avoid detection by the authorities, may turn to less-regulated channels such as online games to launder money. The feature touches on how analytics can play a crucial role in preventing financial crime by discerning suspicious patterns in transaction data. It also points out that the global video games market is projected to hit $100 billion in revenue this year with an average annual growth of 6% through 2019. For the story, Channel NewsAsia interviewed FICO’s Subhashish Bose, as well as representatives from PwC and the Monetary Authority of Singapore (MAS), the nation’s central bank. Click on the image above to view the Channel NewsAsia video “Online gaming – a new avenue for money laundering?” or view it here.

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Fraud & Security Rise in E-Payments Fraud Demands New Analytics

Fraud locks
Sep212016

Online banking electronic payments fraud is on the rise, as fraudsters explore security gaps in the emerging banking channels. For instance, data released by Financial Fraud Action UK, shows that UK online banking fraud losses increased by 38% in 2014 from 2013, and by 64% in 2015 from 2014. The rapid growth of fraud losses calls for an effective e-payments fraud prevention solution and one that can adapt to varying fraud patterns. In early 2013, we launched the first FICO Retail Banking Payment model on the FICO® Falcon® Fraud Manager 6 platform, a model designed to detect fraud in e-payments (ACH, Swift, BACS, etc). Since then our Retail Banking fraud solution has steadily gained worldwide adoption, with clients in North America, Europe, South Africa, mid-East, and Asia. Our Retail Banking model is empowered with many advanced analytics patented technologies.  As I blogged previously, one distinguishing technology is online self-calibrating models. ... [Read More]

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