Archive for Security

EMV: It’s Time to Talk to Consumers

Originally posted on Vantiv’s Blog.

Guest post written by Patty Walters, Senior Vice President of Merchant Products and Security for Vantiv.

Vantiv is presenting at NAFCU’s Technology and Security Conference, Feb. 11–13 in Las Vegas. Learn more »

In a recent Vantiv/Mercator study, only 15 percent of U.S. consumers said that they have an EMV equipped debit or credit card. That’s not surprising, since the industry is still in the early stages of rolling out EMV. What is surprising is that two-thirds of that group said that they have used their cards in chip mode in the U.S. That’s just about impossible, given the relatively small number of EMV terminals out there. It’s more likely that the chip-card owners used their cards in the traditional way by swiping the mag-stripe.

Still, that finding indicates that consumers are a little confused about EMV. (The study also found that one in five weren’t sure whether they actually had an EMV card.) But why shouldn’t they be confused? To them, this is a new and largely unexplained technology. Read more

Fraud Insights

Originally posted on forwardbanker.com.

Guest post written by Scott P. Wallace, Vice President of Marketing, Deluxe Corporation.

Deluxe Financial Services is the NAFCU Services Preferred Partner for Check Printing, Online Check Ordering, Check Fraud Prevention, and Member Loyalty Solutions.

Banking margins are being squeezed and fraud continues to rise. This is not a good combination. To combat this, financial institutions want to stay aware of the trends and opportunities to mitigate losses to help improve bottom line profits.

A survey of both financial institutions and non-financial institutions compiled by the Federal Reserve Bank of Minneapolis provided some great insights into payments fraud.

What they found was fraud is a problem across all those surveyed no matter what their asset size, type of institution, or payment products offered. For financial institutions, the payment method most vulnerable to fraud was signature debit cards with over 83 percent experiencing an attempt. However, that’s only one of nine possible methods documented in the survey that fraudsters have tried to use. Read more

Gamification: Three Steps to Foolproof Engagement

Originally posted in The Federal Credit Union magazine.

Guest post written by Wayne Conte, Executive Vice President, Affinion Group

Affinion Group is the NAFCU Services Preferred Partner for AD&D Insurance, Enhanced Flex Checking, and Identity Theft Protection.

Although the concept has been around for decades, the term “gamification” was coined in 2002 and exponentially gained popularity around 2010. Gamification is the use of game mechanics to engage users and influence behavior. It’s widely used for diverse applications in marketing, education, loyalty building, productivity boosting, security authentication, incentive programs, and more. Chances are you already participate in several gamification programs.

One example of gamification dates back to the 1980s, when the airlines launched their frequent flyer programs. The result is millions of participants earning points or miles in exchange for their loyalty. The airlines quickly determined that air travelers were more interested in achieving elite status than earning rewards. Leveraging the consumer’s need for status —or achievement— is demonstrated in other gamified applications such as receiving endorsements on LinkedIn and “likes” on Facebook, earning badges on TripAdvisor or Yelp, becoming a mayor on Foursquare, or tracking fitness activities with the wearable Jawbone.

According to a Gartner report, more than 70 percent of the Forbes Global 2000 companies will have at least one gamified application by 2014. These companies will invest billions of dollars over the next few years to implement gamification and, ultimately, differentiate themselves through gamification strategies. As consumers become more accustomed to gamification in their everyday lives, it makes good business sense for you to engage both your members — and your employees — in the same manner.

Here’s how to get started: Read more

Helping Your Small Business Members

Originally posted on forwardbanker.com.

Guest post written by Nick Buri, Fraud & Payment Solutions Manager, Deluxe Corporation.

The 2014 Deluxe Exchange Conference offers crucial advice on the most pressing topics in financial services. Use code NASC14 to register »

”Life is 10 percent what happens to you and 90 percent how you respond to it.”

This famous quote from Lou Holtz, a college football coaching legend, applies to your role in helping your small business customers with the problem of fraud.

Fraudsters are increasingly targeting small businesses. Consider these statistics: (1) 95 percent of all VISA credit card data breaches involve small businesses, (2) 73 percent of small businesses were hit by a cyber attack in 2011.

Why are small businesses an attractive target? Read more

Five Fraud-Fighting Tips for Credit Unions

Originally posted on CUInsight.com.

Guest post written by Jay Slagel, President and CEO, Allied Solutions.

Allied Solutions is the NAFCU Services Preferred Partner for Insurance—Bond, Creditor Placed (CPI), Guaranteed Auto Protection (GAP), and Mechanical Breakdown (MBP); iSolutions; rateGenius.

It is not surprising that fraud in the workplace increases during an economic crisis or recession and small businesses (including large and small credit unions) may be vulnerable. Internal fraud typically occurs when someone has an incentive, such as a financial or economic hardship, plus the opportunity. National statistics show that it typically takes two years from the time fraud begins to the time of discovery. As a result, while some entities have already discovered fraud born of the recession, many more are likely to uncover problems in the coming years.

Management staff may be wearing multiple hats to keep up with more work, giving them less time to monitor employees, keep an eye on expenses and oversee their internal operation. During these periods, there might be the potential for a credit union to drop the ball in areas of oversight. Below are several ways to help fight fraud:

Establish fraud controls. Conduct a quick assessment of your fraud controls and determine who is responsible for fraud detection and reported misconduct. Credit unions should clearly establish this oversight which could be assigned to a senior manager, an internal auditor or the supervisory committee. Basically, this individual or group would perform periodic reviews of employee accounts and other areas where fraud might occur so as to detect and act early if a problem surfaces.

Read more