Fraud Schemes Evolving Payments Instruments
While some of the latest schemes borrow from scams
past, today’s fraud schemes are as sophisticated as banks’ most
advanced payments systems. And stopping them is still a challenge.
By
Maria Bruno-Britz - Bank Tech
Name a payment method and there is probably some scheme to defraud it.
Since the Chinese introduced paper money,
banks have been concerned about fraud. More than a thousand years
later, payments fraud continues to haunt banks, consumers and
businesses.
"Fraud is still rampant," comments Paul Sussman, VP with First
Manhattan Consulting in New York. "The majority of businesses over $1
million in revenue are going to be exposed to payment fraud, and almost
every bank is being hit by fraud today.
From simple "Dumpster diving" to organized crime rings that rely
on complex computer programming, fraud scams grow in sophistication to
match the evolution of payment forms. "Fraud trends continue to
evolve," notes Douglas Twining, director of fraud services for
Cleveland-based KeyBank ($99 billion in assets)....
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