Training On Fraud Prevention For An Online Payment Provider

Startling numbers from one study show that in the United States, 140 million credit card holders have 1.2 billion retail and credit cards (Lynott, 2008). Outstanding balances of

It has come to my attention from the security analysts of VL Bank and victims that commercial customers of VL Bank have been involved in identity theft and fraud. Multiple user accounts were created without authorization claiming the identity of our customers. These fake accounts were used to make twenty-nine transfers of $10,000 each, equaling $290,000. The bank transfers were being sent to several U.S. bank accounts of unknown individuals. The U.S. banks involved in the transfers were Bank A in California, Bank B in New York, Bank C in Texas, and Bank D in Florida. After the funds were transferred to one of these banks, the funds were

It is important to first gain an understanding of the various types of fraud, in order to aid understanding in regards to the prevention of fraudulent activity. This paper begins with a review of the definition of financial fraud, and identification of the different fraud types. Further, included is an examination of what motivates individuals to commit fraud, including an identification of some of the method in which people commit fraud. A discussion of the importance of the fraud triangle, and how rationalization contributes to fraud is a key area of focus. Finally, there is an examination of some controls that prevent and detect fraudulent behavior, including the value and importance of understanding the nature of fraud for

The Gramm-Leach-Bliley Act (GLBA) requires financial institutions or companies that offer consumers financial products or services like loans, financial or investment advice, or insurance to explain their information-sharing practices to their customers and to safeguard sensitive data. (Gramm-Leach-Bliley- Act, 2015)

In January 2007, TJX Companies Inc. released a statement to the press that an estimated 40 million of their customer’s credit card accounts had been compromised (although final reports state that over 94 million accounts were affected) (Berg 2008). Through the company’s POS (Point of Sales) system, credit card information was stolen by a ring of hackers and approximately $4.5 billion spent on these cards (Berg 2008). What the hackers did was intercepted the credit card information from customers who swiped their cards at the store and then created their own physical cards using this information. Then they sold the credit cards to people, who turned around and used these cards at retail stores, like Walmart (Agrawal 2011). Three areas of weakness within the company’s IT systems that allowed for an attack of this scale were: inadequate wireless security, improper storage of customer data and failure to encrypt customer account data (Berg 2008).

Consumers incurred overdraft fees, maintenance fees, insufficient funds fees on the accounts from where the money was taken. In addition to the fees on their real bank accounts, the consumers who unknowingly has a credit card opened in their name were also being

When online commerce first emerged, many consumers were wary of supplying their credit cards and giving their personal information to online stores. This led to the development of websites such as Paypal, which restricts the access a retailer has to one’s credit card number (Einstein). The threat of fraud has always been a worry for online consumers, but consumers face the same threats when shopping in a brick and mortar store (Chadwick).

Recently, Wells Fargo employees, trying to meet onerous sales goals, created as many as 2 million unauthorized savings, checking and credit card accounts creating a huge scandal for the San Francisco-based institution. It has prompted calls for a wide-ranging investigation into the banking industry, where sales goals are common and complaints of unauthorized accounts have been lodged against other banks. I hereby have examined this issue thoroughly and would like to provide an analysis and two solutions that can prevent these types of scandals from occurring again; one is the modification of daily sales target system and the other is the institution of technology to verify customer contacts.

The major routes of fraud which is contrary for merchants who sale and ship products are the mail and the internet as they affect legitimate mail-order and Internet merchants. The card should be present (called CNP, card not present) so the merchant can trust the issuer (or someone purporting to be so) issuers present their information in any way they

Saiz, Thomas J. "FRAUD IS A MAJOR SECURITY ISSUE FOR BUSINESSES." San Diego Business Journal, vol. 20, no. 15, 12 Apr. 1999, p. 19. Learning Resource Center, t7lrcproxy.iccms.edu:2129/sbrc/detail/detail?vid=0&sid=9b7a4376-1cc6-48ea-8008-4ece1e694af8%40sessionmgr4008&bdata=JnNpdGU9c2JyYy1saXZl##AN=1805123&db=b9h.

The Fraud Prevention System (FPS) initiated on June 30, 2011, gave directions to government to stop, prevent, and identify improper payments using a variety

Please forgive my ignorance but I honestly have no idea how your response applies to the transaction in question. The situation is this: I physically handed the customer service representative at Planet Fitness my Navy Federal debit card for payment. She processed the payment and then asked "Would you like me to save this debit card information to your Planet Fitness account so we can automatically process future payments?" . I agreed to let her do this, and it has been a problem with Navy Federal ever since. In fact, I just received notice that you returned a payment to a different company, for the same reason, stating that this account doesn't allow this type of transaction. Of course the same situation applies; I simply used my debit card

Among the nine factors of the perfect fraud storm; the economy, incentives, and expectations all fulfilled the three elements of the fraud triangle providing the necessary motivation for management to succumb to

It’s also known as a Financial Modernization act of 1999. This act allowed banks to engage in a wide array of financial services like merging with stock brokerage and insurance companies, which also gave them way to possess a large amount of public and private client information. The information is usually considered private and risk of misuse is high, therefore Title 5 of the GLBA specially addresses protecting both the privacy and security of information.

Online payment processing services perform transactions at a much greater speed than manual processing. As well as ensuring error-free computations and faster processing time. Which means