When a criminal creates a trail of deception, it often leads right back to them. Criminals who operate using the dark web can easily obtain individuals sensitive personal information. How do we know this? We receive information from the media, the company’s themselves, the FBI or other associations that indicate that millions of people’s data is compromised. A fraudster, with a long criminal history may be paid illegal kickbacks in exchange for inducing illicit activity. At any time, a fraudster can call a credit card company and make a false allegation that the consumer is engaging in fraud-related activities. This can happen to anyone, at any time.
Fraud Prevention:
What safeguards can a credit card company install that protects them from liability? Protects their employees, but also prevents their employees from getting caught up in a scam, furthering illicit activity and provides fraud mitigation to their customers? Here are a few things that a company can implement:
1. When a fraud related concern arises, that is external to the company, more information is needed about the person reporting the fraud. First you need to determine if it is coming from a credible source. Investigators would interview over the phone with questions similar to:
a. How do you know this person?
b. Have you done business with them?
c. Have you accessed their accounts?
d. How did you access their accounts?
e. What makes you think that fraud-related activity is occurring?
f. Have you seen first-hand the transactions this person is making?
g. Why do you think that fraud is occurring here?
h. You will want to find out how this person knows all of this, especially when you need a court order, a subpoena, a writ or warrant to obtain this. Making harsh assumptions without any evidence is a recipe for just making trouble, causing delays, etc.
This information is crucial because there could be an area of weakness that an employee, an algorithm, a software virus, a lack of a safeguard or Know Your Customer rule that may have unintentionally given information or caused a problem.
2. A credit card company would need to have special clearances to be able to capture the phone number to trace the IP address back to the device to secure the contact information. While this is occurring, within seconds, simultaneously a background check is being performed on the caller in which would show a criminal history, along with probationary status, restraining order and if there is a warrant out for their arrest. With this new information, an interrogation could be done over the phone, and on the spot. Fraud investigators would know the questions to ask, and many problems with tying up the consumers accounts can be circumvented.
3. This poses the next question. What safeguards does a credit card company have in place right now that is protecting consumers from criminals who have illegally obtained their financial information? With past data breaches and millions of individual information floating on the dark web, for sale – the general contact information, DOB and SS# can no longer be used because it is compromised and on the dark web.
4. Credit card companies need to be serious about mitigating risk for their consumers and need to close the loopholes that may be allowing fraud to occur. Criminals who inconvenience a consumer putting them in a financial lockdown because they cannot use their credit/debit cards puts the customer at risk for financial abuse, opening them up to manipulation, blackmail, a possible forced bankruptcy, bribery and extortion. If they are being abused at home, this financial abuse can further their situation and not give them a way out if they needed to leave.
5. If during one of my risk assessments, a company has a few loopholes that need to be closed, they have 30 days to do so. Nothing complicated, they just need to follow the step-by-step process to close them. By not closing a loophole, another fraud can occur or allow other frauds in to occur. My clients have to sign a form indicating that it was closed.
6. The last prevention method that a company can install right away is anti-fraud awareness training for their organization. This isn’t a one-time training every year, it is ongoing and specific to your business and industry. Posters, fliers, handouts, emails and staff meetings can be top of the mind alerting employees of the red flags, prevention, detection and deterrence. Employees need to be aware of current scams in their industry so that they too can protect the company.
It is important for your organization’s employees to know that if they are easily led into believing the fraudster who is attempting to impersonate an account holder, a business partner or even a relative who is “just concerned,” with a “thought you should know,” or “in case you haven’t heard,” you are likely dealing with a fraudster.
The relationship between the person placing the allegation and the accused also needs to be investigated. If there is an estrangement, a restraining order or a person who is assisting in making trouble for the consumer, this needs to be investigated by the fraud department of the credit card company and/or the FBI.
Where does your investigation point back to?
This isn’t credit card company’s fault, but they do need internal controls that safeguard their customers, so they aren’t put into this position. Safeguards need to be placed for liability, but also for customer fraud prevention and protection.
Planning ahead: If financial institutions, along with the FBI and government associations work together to prevent fraud from occurring on accounts, a criminal(s) is going to have a difficult time in gaining the upper hand over consumers and then tricking them into believing their scams.
PC: andreyPopov
