Bruce Charles’ Post

Stop Consumer Financial Scams I read some good US Linked in posts today about fraud fighters getting together and sharing their fraud ideas and stories. Really good. And I saw where Nice Actimize worked with Datos to get a new scam report out. Again really good. But I will tell you what is really good—that as a fraud fighter you convince your senior management to fund and build out scam controls and money mules management at your FI, along with the associated reporting/tracking. When you do that, you can be proud you made a difference. Yes, I know some FIs are already doing this—some big money center banks, some regional banks. And maybe some smaller FIs as well. Yet this not good enough. We know what the problem is, the pain it causes our FI customers (maybe even death), and we know it starts at dating sites, internet platforms, text messages , etc. But as FIs we need to control what we own—online banking and the payment rails. Consumer financial scam losses is a giant problem for bank customers and it is starting to damage the reputation of banks and the banking system. Either the banks actively address this issue or soon the regulators will do it for you. We always say we don’t need regulations because we know is what to do. Well, prove it now.

Hip to the latest Nacha rule update? 👀 "When fraud is detected, the originating depository financial institution (ODFI) can request the return of the payment, the RDFI can delay funds availability (within limits), and the RDFI can return a suspicious transaction, without waiting for a request or a customer claim, per the release." I applaud the effort but am eager to see this in practice. 👏 Will FIs be able to speak to each other faster than #fraudsters are able to manipulate account information and withdraw funds? ☠ If you don't catch a #businessemailcompromise for 2 months, will this really stop fraud from taking place? 🤷♂️ 🐢 Finally, a base level framework for #ACH #monitoring, but still no #liability shift... If you're worried about #ACH #Fraud but don't have the time to become a clearing house expert, the answer to the fraud problem here remains the same: REPAY - Realtime Electronic Payments. We take #ACH #Fraud #Protection a step further and we DO accept liability for any payments sent to the wrong place. With our #ML driven tech and the scale of our platform: we don't reduce fraud, we eliminate it. And that's a check you can take straight to the bank! 💸 -- And hey, I'm Dylan. If these problems resonate with you or if you're still stuck in a check-run, give me a shout for tips, tricks, tools, and advice! 🚀 #repay #nacha #ach #fraud #b2b #payments #VPAAS

Piermont, Sutton banks hit with FDIC consent orders over BaaS (quoted from the article) The FDIC ordered Piermont to review all transactions since September 2022 to ensure all suspicious activity was reported. Sutton, meanwhile, must compile an inventory of its third-party relationships. Piermont Bank and Sutton Bank each entered into consent orders with the Federal Deposit Insurance Corp. in February, the regulator disclosed Friday, highlighting alleged deficiencies in the lenders’ banking-as-a-service work and partnerships with fintechs. New York City-based Piermont Bank “engaged in unsafe and unsound banking practices,” and failed to have the internal controls and information systems needed for the bank’s size, as well as for the scope and risk involved with its third-party relationships, the FDIC said in the consent order. In a separate order, Attica, Ohio-based Sutton Bank was also charged with unsafe or unsound banking practices and violations related to the Bank Secrecy Act. Good Risk Management practices for Cybersecurity, AML, and Enterprise GRC are becoming important both for Banks as well as BaaS providers. Consent orders and cease-and-desist can be the outcome for not following the rules. Reach out to us at La Meer Inc. for a demo of our GRACE solutions that can address all of these areas with unified affordable systems. Write to us at [email protected] #cybersecurity #aml #enterprisegrc #consentorders https://lnkd.in/gZpG4cmV

Nice to see the US take a more European approach when it comes to fraud prevention around the ACH network. It takes two to tango and receiving banks/cu's should want to stop this type of fraud just as much as originating banks/cu's. Added bonus to see LSEG's very own Brian Holbrook quoted here too. Have a great day all! #nacha #creditpushfraud #communitybanks #creditunions #risk #fraud #bec #idtheft #payments #ach #cip #bankaccountauthentication #emailauthentication #lseg #lsegriskintelligence https://lnkd.in/eQdpz-sG

I have had this sense - for a long time now, that the large banks are NOT performing the same level of due diligence that community banks undergo in new account openings. Why do I have this feeling? Because I know what it takes to open an account here and I often ask people what was required of them when they opened an account at a big bank and the two are vastly different. Now I know that is anecdotal but I think we have more evidence and it is time for the regulatory agencies to hold the large banks accountable for their failures in AML/CFT. Good article by Kate Berry.

This is what happens when you do not have parameters built around linking external bank accounts to your primary account. A simple API call to LSEG's Bank Account Verification tools would have stopped this fraud before it began. Share this article with your Executive Committee, Board and whoever else is more concerned with keeping costs down then preventing fraud. #bankaccountverification #bankaccountauthentication #externalaccountlinking #accounttakeover #identityauthentication #emailauthentication #lseg #lsegriskintelligence #giact #fraud

Financial institutions are increasingly navigating a sea of scams and fraud. With the evolution of emerging technologies, new avenues for attack have opened, leaving banks, credit unions, and their accountholders more vulnerable. As peer-to-peer (P2P) payments become an expectation, the risks for banks and credit unions edge higher. The real-time nature of P2P payments and the “relationship” between the scammer and the victim, makes it exceedingly difficult for banks to detect and mitigate P2P scams. Read more: https://ow.ly/gaFg50QGaKS #payments #p2ppayments #p2p #fraud #scams

📣SECURE YOUR SPOT TODAY📣 Spotlight: Handling Suspect Credits in ACH Webinar Wed, Jul 31, 2024 2:00 PM – 3:00 PM EDT Register Here: https://zurl.co/kFwX To an experienced Operations professional, the return options available in the ACH Network may seem pretty straight forward, but Compliance Officers often realize that their unique cases require the institution to look beyond standard definitions to comply with AML/CFT and other Regulations. Considering the challenges institutions face in balancing ACH Rules with other compliance requirements, we’ve created a course just for you both! Did you know? 🔸You can refuse to allow a transfer or provide funds to a consumer if you suspect money laundering /money mule activity is involved? 🔸 You can return suspect tax refunds, even suspect state refunds? 🔸 There’s more than one way to return an ACH credit? 🔸 Some ACH return options do not require customer approval? 🔸 There’s a better option over Reversals for ODFIs to recover fraudulent credits? If you answered “no” to any of these questions, then this course is for you! Using actual cases of fraud, we’ll examine how to handle suspect ACH credit entries. Presenter: Rayleen M. Pirnie, BCJ, AAP, CERP is the Director of Risk & Fraud at NEACH #aml #ACH #banking #webinar #banks #BSA #fraud #CFT

Banks, Retailers, Fintechs… every type of company dispurses funds. Either to users or to vendors. In today’s volatile landscape, with expert and well funded fraudsters, you must have real-time bank verification in place! LSEG is here to help.

The proliferation of check fraud is a failure of the nation's largest banks and the regulators that supervise those banks. In a letter sent to the House Financial Services Committee and Senate Banking Committee members last week, IBAT called upon lawmakers to hold the nation's largest banks accountable for their failure to perform proper fraud monitoring functions. "Simply put, the failure of the nation’s largest banks to police accounts being opened and the deposits made into those accounts, usually remotely, without adequately addressing ‘know your customer’ requirements enable the scourge of check fraud to plague our banking system. IBAT members are perplexed that, on the one hand, the regulators are strictly enforcing compliance with KYC/BSA/AML/CDD/CIP/OFAC regulations and SAR reports on community banks, but they are not insisting on the same level of compliance for the largest financial institutions regarding check fraud."  https://lnkd.in/gT3xWzND