Protecting the Enterprise

2008 saw the last of the FACT Act compliance deadlines, making 2009 the first full calendar year of regulatory oversight. Understanding how others are fighting the address fraud that goes hand-in-hand with identity theft can be a help to anyone wishing to benchmark their own strategies and processes.

This year, the Fraud Management Institute inaugurated its first annual Address Fraud Survey.  We surveyed a wide variety of fraud management professionals in the banking, telecommunications and e-commerce industries to learn about their current experience with address fraud, the fraud risks they are giving top priority, and their implementation plans for different fraud management strategies.  The results, and our analysis of those results, are published in this report.

Fraud losses impact every business. Caveat Emptor, let the buyer beware, tells half the story; Caveat Venditor, let the seller beware, tells the rest. Fraud costs are passed on to society through increased customer inconvenience, opportunity costs, unnecessarily high prices, and criminal activities funded by the fraudulent gains. In short, fraud is rampant. This study developed a theoretical framework for the Fraud Management Lifecycle^®, examined numerous significant lifecycle stage interactions, and evaluated the lifecycle in five industries with significant economic crime. The Fraud Management Lifecycle^® is dynamic, evolving, and adaptive. The eight stages are: Deterrence, Prevention, Detection, Mitigation, Analysis, Policy, Investigation, and Prosecution. Effective fraud management requires a balance in the competing and complementary actions within the Fraud Management Lifecycle^®.

This paper presents a perspective on the future of payment card fraud during and after the deployment of chip cards. It reviews the past and present state of card fraud, as well as advances in chip technology. More specifically, it proposes a depiction of what future chip card fraud will look like based upon past fraud activity, likely trends and the ongoing creativity and growing technical capability of fraudsters.

This article originally published in Internet Retailer Magazine describes the operation, use, and benefit of Card Verification Numbers when used in card-not-present transactions. It includes detailed descriptions and visuals of Card Verification Numbers along with descriptions of their limitations.

This article originally published in the Cyber-Crime Fighter describes fraud detection and prevention methods in each of the three critical phases, (initial registration/funding, transaction monitoring, and reloading) of fraud management for stored value cards.

This article originally published in the White-Collar Crime Fighter is part one of a two part series that describes the eight stages of the Fraud Management Lifecycle and how they can result in superior fraud management performance.

This article originally published in the White-Collar Crime Fighter is part two of a two part series that describes the eight stages of the Fraud Management Lifecycle and how they can result in superior fraud management performance.

This article originally published in the White-Collar Crime Fighter is an extension of a two part series that describes the eight stages of the Fraud Management Lifecycle and how they can result in superior fraud management performance.

This article originally published in Credit Card Management Magazine, describes the nature of the fraud threat posed to the card industry by employees. In addition to describing the threat it introduces tools that can be used to proactively combat the threat of internal fraud.