BAI Notes: Authentication and ATMsFFIEC Draft Guidance Provides Fodder for Conversations, Marketing Plans
Well, an interesting perspective offered by a solutions vendor: It's not just the banks that are siloed. The vendors are, too. According to this leader, the industry is focused more on specific fraud vectors than on cross-channel solutions. Until the vendors start actively pursuing industry partnerships that will help break down some of these silos, cross-channel fraud will remain a daunting challenge.
I'd welcome some feedback on this observation.
Global ATM RisksI had the opportunity to speak with several industry thought-leaders, and one of the most fruitful conversations was with Chuck Somers, VP of ATM Security at Diebold.
Skimming: 'This crime is more lucrative than drugs.'
The topic: ATM fraud. Somers' message: Skimming is a global concern that's only becoming more lucrative for the fraudsters.
"Unfortunately, there's a high ROI on this crime," Somers says. "At the end of the day, even the people who are out there taking the biggest risks, either attaching the skimming devices or redeeming the fraudulent cards ... even if they do get arrested, even if they do get prosecuted, they do pretty soft time in a local jail."
And because ATM skimming is a non-violent crime - as opposed to bank robbing, which typically involves a gun and results in tough sentencing - the courts have generally treated criminals more leniently. "This crime is more lucrative than drugs," Somers says. "There's a lower chance of being caught and lower punishment for the crime afterwards."
Interesting, too, is the rise of logical security breaches - malware - on machines in parts of Europe and Latin America. The fear is: External threats to ATMs have been challenging enough to detect; what happens when the violations occur internally?
For more insight on global ATM threats, please listen to this interview with Somers.
And to share your own insights on the fraud issues raised at BAI, please submit comments in the form below. I'll publish the best of them in a future blog entry.