The Bankwatch

Tracking the consumer evolution of financial services

Archive for the ‘Fraud’ Category

Bad economy, more insider trading & fraud

When the economic wheels fall off, thats when this kind of thing comes out of the woodwork in banking.  This is the second one in Japan recently, and in the US, we have seen Madoff, and Stanford.

aozora logo_en

Aozora Bank Raided For Suspected Insider Trading

TOKYO (Nikkei)–The Securities and Exchange Surveillance Commission on Thursday raided the main office of Aozora Bank (8304) in Tokyo’s Chiyoda Ward on suspicion that an employee of the bank traded shares using inside information obtained at work.

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融資審査情報を悪用して株のインサイダー取引をした疑いがあるとして、証券取引等監視委員会は4日、金融商品取引法違反の疑いであおぞら銀行の男性行員 を任意で聴取、東京都千代田区の本店を強制調査した。今後の調査で容疑が固まれば、捜査当局に行員を告発する。関係者によると、聴取を受けたのは、融資審 査部門に所属する40代後半の男性行員。利得額は、数年間で一千数百万円に上るとみられる。

Researched by Nobuyo Henderson

Written by Colin Henderson

June 4, 2009 at 00:36

Posted in Fraud

Finextra: Lloyds TSB launches debit card fraud detection service

Lloyds announce a service that’s a long time coming.  Many credit card companies have had this service for years.  An automated alert to the customers telephone will announce a potential fraud alert. 

The message customers hear will ask them if they recognised the transaction in question. If the customer thinks fraud has taken place they will be transferred to a call handler who will then freeze the account and organise a refund. Where customers recognise the transaction, they will be able to confirm it is genuine and end the call.

Source: Finextra: Lloyds TSB launches debit card fraud detection service

The service is based on the First Alert developed by Adeptra which works alongside Lloyds TSB’s fraud detection systems, automatically calling customers, whenever and wherever card fraud is suspected on their account.

The system has been in use for the bank’s credit card customers since 2005 and is now being extended to cover all debit card customers.

This is a strong contributor towards loyalty, because it is a multi channel play.


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Written by Colin Henderson

March 14, 2007 at 22:42

BBC – Radio 1 – Online banking fraud rockets

 Update to the earlier post.  The increased phishing in the first half of this year, is resulting in significant increases in fraud attempts through Banks’ online banking throughout the world.

More of us are getting conned into giving out our bank details over the internet. Phishing fraud uses emails and fake websites to trick customers into revealing their username and password. Between January and June this year there were more than 5,000 cases. That’s compared to 312 in the first six months of 2005.

Source: BBC – Radio 1 – News – Online banking fraud rockets


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Written by Colin Henderson

November 7, 2006 at 12:16

Posted in Fraud, Online Banking

THE PERFECT MARK – a sobering, detailed description of email fraud

Worth reading for everyone, and all bankers, just to understand the human dimension of internet fraud.

The New Yorker: Fact

How a Massachusetts psychotherapist fell for a Nigerian e-mail scam.

The true irony is that the credulous American here is the only one who went to jail.  His trust in 'God' and belief in the "poor" Nigerian people he was dealing with ruined him, and his family.  He was a 57 years old, churchgoing veteran.  The Banks lost in this too, because of the bad cheques for several hundred thousand, that Worley negotiated.

The trial took six days, and the jury found Worley guilty on all counts. On February 15th, Worley, now sixty-two, returned to the federal courthouse at the edge of Boston Harbor to face sentencing. 

Read the rest of this entry »

Written by Colin Henderson

May 13, 2006 at 18:34

Posted in Consumer trends, Fraud

Why chip & Pin won’t stop fraud

Hitesh Patel, KPMG Forensic talk about the escalation of fraud despite the introduction of chip and pin. The criminals are able to move to the weakest point in the system.

Why chip & Pin won't stop fraud | This is Money

The fastest growing area is 'cardholder not present' fraud. According to the  clearing banks' association Apacs, it shot up 29pc to £90m in the first six  months of 2005 and accounted for more than 40% of total card fraud losses.

Its worth noting the fraud escalation is not an intrinsic weakness in chip and pin. In fact we are not intruducing chip and pin, and will not be until circa 2015 at the earliest. Only then will the entire world be on chip and pin, and then we will see the strength of the technology.

Far from it. KPMG's latest Fraud Barometer found that it had rocketed to  nearly £1bn in 2005 – the highest level for a decade. The battle is far from  over and none of us can afford to relax.

The truth is that as antifraud measures evolve, so do the scams. Fraudsters  have moved on from stealing or skimming cards. Now their emphasis is on  identity fraud – obtaining your personal details and making remote purchases  over the internet or by phone.

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Written by Colin Henderson

May 13, 2006 at 02:31

Posted in Chip Cards, Fraud

The biggest cyber-heist of customer debit-card numbers to date

In what was earlier referred to as the Citibank ATM fraud, the sheer scale of this fraud is only now coming to light.

Banks scramble after cyber-breach | Chicago Tribune

Exact figures are unknown — some banks have reported numbers; others have not. It is thought that at least 350,000 accounts across the country were defrauded, involving more than $10 million in losses, according to some experts.
“In terms of financial damage, this is definitely the biggest documented case of debit-card fraud we know of,” said Avivah Litan, a banking analyst and online-fraud expert for Gartner Inc., an information-technology research company.

Central Florida’s three major banks — Bank of America, Wachovia and SunTrust — have acknowledged notifying certain customers about the problem, closing an unspecified number of accounts and issuing new cards and PINs.

The frauds involve third party processors:

In one case alone, hackers invaded the
computers of an Atlanta-based credit-card-processing company, stealing
an estimated 40 million credit- and debit-card numbers. The company,
CardSystems Solutions Inc., processed card transactions for Visa,
MasterCard and all major card brands.

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Written by Colin Henderson

April 22, 2006 at 12:03

Posted in Debit cards, Fraud, US

Revealed: how credit cards are plundered on the Net

A simple and telling article on the ease with which criminals trade in customers identities.  While the numbers traded may not be large, they are very consequential for the customers whose identities are involved.

Revealed: how credit cards are plundered on the Net – Britain – Times Online

Every day at least 400 credit card numbers, along with other personal information  including three-digit security codes, PINs and dates of birth, are sold by the gangs, The  Times has learnt. Other pieces of information routinely taken include phone numbers,  e-mail and street addresses, and mother’s maiden names.
A credit card number sells for $1 (60p), while a card with a three-digit code fetches $5. Additional security information such as a mother’s maiden name can add $10 to a card’s value and a working PIN can push the price up as high as £100.

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Written by Colin Henderson

April 15, 2006 at 22:09

Posted in Fraud, Security

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