1 / 10

Federal Reserve Retail Payments Risk Forum

Federal Reserve Retail Payments Risk Forum. Dan Miner, CTP Principal Atlanta, Georgia November 5, 2009. Agenda. About TSI Industry Observations Trends in Payments Fraud Tools to Protect your Cash Best Practices in Fraud Protection Conclusion. About Treasury Strategies. Who We Are

eara
Télécharger la présentation

Federal Reserve Retail Payments Risk Forum

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Federal Reserve Retail Payments Risk Forum Dan Miner, CTP Principal Atlanta, Georgia November 5, 2009

  2. Agenda • About TSI • Industry Observations • Trends in Payments Fraud • Tools to Protect your Cash • Best Practices in Fraud Protection • Conclusion

  3. About Treasury Strategies • Who We Are • Treasury Strategies, Inc. is the leading treasury consulting firm working with corporations and financial services providers. Our experience and thought leadership in treasury management, working capital management, liquidity and payments, combined with our comprehensive view of the market, rewards you with a unique perspective, unparalleled insights and actionable solutions. • What We Do Corporations We help you maximize worldwide treasury performance and navigate regulatory and payment system changes through a focus on best practices, technology, liquidity and controls. Financial Services Our experience, analytic approach and benchmarks provide unique consulting solutions to help you strengthen and grow your business. Treasury Technology We provide guidance through every step of the technology process. Our expert approach will uncover opportunities to optimize the value of your treasury through fully integrated technology solutions.

  4. FI Risk and Regulatory Compliance Reviews • 1,006 Individual Standards / Mitigants • Regulation CC, Regulation E, FFIEC Guidance / Standards, NACHA Rules, BSA/AML, UCC 4, UCC 4A, Regulation O, GLBA, and best practices • Met, partially met, gap • Prioritization and plan to address • Policy documentation • Observations • Risk and compliance fragmented by product • Lack of consistency • Poor governance • Incomplete documentation • Inadequate client risk training / education

  5. Business Fraud Risk Mitigation Businesses must use the tools available to them • Internal Controls • Bank tools • Third party tools

  6. Trends In Payment Fraud • The 2009 AFP Payments Fraud Survey found that 71% of all firms experienced at least an attempted fraud in 2008. • 38% of those firms observed a specific increase in fraud levels in the second half of 2008 - when the economy was in the middle of the economic crisis. • Estimates have put the total cost of payment fraud to businesses at $50B a year. Sources: 2009 AFP Payments Fraud Survey, Union Bank

  7. Trends in Payment Fraud • The AFP Survey also found that firms were most likely to experience attempted check fraud. Of the firms that have experienced attempted payment fraud: • 91% through Check • 28% through ACH Debit • 18% through C2B Card • 14% through B2B Card • 7% through ACH Credit • 6% through Wire • Recent Treasury Strategies market research found that checks are the primary source of fraud at a majority of firms. Sources: 2009 AFP Payments Fraud Survey, 2009 Treasury Strategies & Financial Insights Key Trends in North American Treasury Report

  8. Most Effective Tools in Fraud Protection • 92% of firms reported in recent Treasury Strategies market research that anti-fraud products are the most effective means to prevent fraud. Source: 2009 Treasury Strategies & Financial Insights Key Trends in North American Treasury Report

  9. Best Practices in Fraud Protection • A company can implement the following practices to help protect itself from fraud across all payment types: • Ensure that any payment-related communications are executed using a secured channel such as encrypted e-mail • Secure access to critical financial information, systems, and supplies, passwords, tokens • Segregate payment-related accounts and duties • Dual approvals • Restrict use of online data communication - websites, email • Segregate systems for financial data • Increase relative mix of electronic payments relative to paper-based payments • Use up-to-date, tamper-proof check stock • Reduce the number of bank accounts • Monitor all accounts daily • Using Positive Pay for Checks and ACH • Stop using checks

  10. Conclusion • Checks are the primary channel for payment fraud today, despite rapidly declining volumes of check payments over the past few years. • However, as online fraudsters become more sophisticated and the popularity of electronic payments rise, the risk of web-related payment fraud also rises. • Companies and FIs can protect their cash with the combination of internal process improvement and adoption of any of the fraud prevention products on the market.

More Related