Fighting Fraud Post-EMVEquifax's Smith on Stopping Fraudsters in the Wake of Liability Shift
As customers continue to migrate to online channels and apps to conduct their banking, fraudsters follow closely behind, trying everything from card-not-present fraud to synthetic identities that reuse PII and Social Security numbers to open new accounts. To combat this rise in financial-related fraud, financial institutions need to deploy new, layered defenses that take advantage of the latest technological advances, such as biometrics, along with sharing data with other banks, says Andy Smith, former senior vice president, identity and fraud at Equifax.
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In a video interview recorded at Information Security Media Group's 2015 Fraud Summit New York, Smith examines the types of scams fraudsters are attempting in the wake of the US EMV liability shift, as well as the variety of countermeasures financial institutions can take to derail them.
"We're already seeing, for instance, auto lending fraud getting ... more prevalent," Smith says. "[W]e're seeing rises [in] mortgage fraud and ... defrauding commercial accounts. The other thing that we're going to see is a move to application and account takeover identity-related versions of fraud [and] the move to online channels to avoid having to swipe that [payment] card."
In this interview, Smith also discusses:
- What types of fraud will become more prevalent during the first several months following the EMV liability shift;
- How information tracking and data sharing can reveal the amount of times a single Social Security number is used to open fraudulent accounts;
- How Canadian and UK banks have used data sharing successfully to crack down on fraud.
As former senior vice president, identity and fraud at Equifax, Smith was responsible for improving Equifax's fraud offering to be best in class through aligning analysis, product development and go-to-market efforts. Smith also founded QED Investigations, a private firm specializing in investigating and resolving questionable insurance claims.