payment fraud & loss prevention - afoabc · 2015. 12. 10. · number or company. caller id...
TRANSCRIPT
Payment Fraud & Loss Prevention
RBC Treasury Solutions
September 16, 2015
Presenter: Greg Kent
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Introduction & Agenda
http://www.rbc.com/privacysecurity/ca/protec
ting-your-information.html
Fraud in General
Cheque Fraud – Risk Mitigation Solutions
Recognizing Electronic Fraud
Internal Fraud
Treasurer’s Checklist
Prevalence of Payment Fraud
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Percent of organizations who have
experienced attempted or actual fraud
Percent of of them report that the
number of fraud incidents has increased
Typical loss due to payment fraud$23,000
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*2014 AFP Payments Fraud and Control Survey
Fraud Across Payment Types
Payment Method % of organizations
subject to actual or
attempted fraud
Payment method most
responsible for losses
Cheques 82% 57%
Credit / Debit Cards 43% 23%
ACH Debits 22% 10%
Wire Transfers 14% 9%
ACH Credits 9% 1%
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*Source: AFP 2014 Payments Fraud and Control Study
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What is Cheque Fraud?
Fraud on the front of the cheque:
Counterfeit
Altered
Forged Drawer/Maker
Fraud on the back of the cheque:
Forged Endorsement
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Responsibility for Prevention?
Cheque Fraud Detection Partnership
The Issuer
The Receiver
The Bank
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Prevalence and Impact in Canada
Typical loss - $$?
Cheque Fraud attempts annually - $$?
Multiple attempts – prevalence
Target - business cheques. Why?
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What Does Cheque Fraud Mean to Your Organization?
Time/expense of investigations and risk mitigation
Financial Loss
Governance issues
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How Can You Protect Your Organization?
Daily Reconciliation
Reduction of cheques issued – shift to electronic payments
Maintain proper segregation of duties
Protect cheque stock – no windowed envelopes
Practice safe cheque writing practices
Shred trash that contains sensitive data
Control and update authorizations
Employment practices
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Cheque Fraud - Risk Mitigation Solutions
Electronic Balance & Transaction Reporting
Payee Match with Amount Verification
Cheque Imaging
Electronic Payments
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Recognizing Electronic Fraud
Protecting Your Business
Phishing emails are becoming more sophisticated and can be tricky to spot
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Phishing emails no longer only begin with a generic greeting such as “Dear
Client”. They may use your email address such as “Dear [email protected]”
or even your name.
There is often a sense of urgency in the email encouraging you to respond
immediately.
Many emails have links that look valid but lead to a fake website. Here's a tip: move
your mouse over the link in the email until a small box appears with the URL (web
address). If the web address in the box is different from what you see in the email, the
link may lead to a fake site. Do not click on this link.
When in doubt contact the institution directly to discuss with a
representative prior to releasing any information.
Internet & Telephone Scams
Mystery Shopper Scam
"419" or Spanish Prisoner Scam from Nigeria
Sick Baby
Grandparent Scam
Phoner Toner Scam
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Cyber Security
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Tips to Help Protect Your Business
Be certain of the origin of payment
instructions
Be just as wary of phone calls asking for confidential
information as e-mails requesting confidential
information.
Don't trust caller ID Just because your caller ID displays a phone number or
name of a legitimate company you might recognize, it
doesn't guarantee the call is really coming from that
number or company. Caller ID spoofing is easy.
Ask questions If someone is asking for confidential information, ask
them to identify who they work for, and then check them
out by verifying with a known contact and call them
back.
Check it out To help you spot phishing emails and fake websites,
see the tips under Recognizing it at
http://www.rbc.com/privacysecurity/ca/email-and-
website-fraud-3.html.
Ensure your computer software is up-to
date
Important your computer software is up-to-date as
security patches are periodically released
Protect your banking information and never share your online password or
token information!
Treasurer’s Payment Security Checklist
Cheque Fraud
Wire Fraud
General Internal Controls
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