Fighting Fraud: 5 Key ConcernsNew Risks Make Cross-Channel Fraud Prevention a Priority
Faulkner, a technology entrepreneur who oversees security products for ThreatMetrix, says e-commerce, enterprise-level security, the need for stronger authentication, cyberwarfare threats and malware's multichannel attacks are top risk-management and security focuses for banks and business.
But addressing those security concerns won't be easy. Fighting fraud requires a multichannel approach. For financial institutions, that means addressing attacks waged against accounts from emerging channels, like mobile, while continuously monitoring attacks aimed at more traditional channels, such as online.
It also means protecting commercial and retail customers, which typically pose the greatest security vulnerabilities.
"You have to address fraud across multiple channels," Faulkner says. "What all financial institutions that look at customers' deposits find is that they need to integrate secure browsing technology. An attack does not have to come from one channel, and financial institutions not only have to protect themselves, but also those in their chain that are targeted."
Integrated, cross-channel fraud detection is critical, especially as banks and credit unions work to meet increasing regulatory demands, such as those outlined in the Federal Financial Institutions Examination Council's Authentication Guidance.
"Banks are being asked to launch complex device identification," and mobile risks are posing challenges Faulkner says.
"Fraudsters are moving from targeting e-commerce through the front door to directly attacking accounts by using malware installed on the machine or sniffing credit card credentials," he says. "And mobile has some distinct challenges when it comes to screening for malware, because mobile pulls in information from multiple places."
During this interview, Faulkner discusses:
- Steps banks and credit unions can take to address cross-channel fraud concerns that involve a mix of existing and emerging channels;
- Growing e-commerce risks posed by mobile wallets, and steps merchants and banks must take to mitigate those risks; and
- Why cyberwarfare is a reality every business and bank should take seriously.
Faulkner is chief products officer for ThreatMetrix and a technology entrepreneur who has more than a decade of experience building products and delivering critical technologies. He is a noted industry expert about issues relating to online fraud, device identification, cybercrime, identity theft, information security and networking technology. At ThreatMetrix, he oversees product management and strategic accounts. Before joining ThreatMetrix, Faulkner was founder and business development director of NetPriva, a network performance software provider later acquired by Expand Networks.