MACC 2015 Chamber Chatter — Summer Edition
Change Language:
Fraud Alert & Overview

Richard HsrtnettII, M&amp;T Bank <br /> <br /> The 2015 AFP® (Association for Financial Professionals) Payments Fraud and Control Survey released show that now, more than ever, the need for new cyber security models and strict control governance is crucial for all businesses given that 62 percent of companies were targets of payments fraud last year.<br /> <br /> Some of the key findings in this year's survey include:<br /> <br /> • Wires fraud incidents nearly doubled, from 14 percent in 2013 to 27 percent last year<br /> <br /> • Paper checks continue to lead as the payment type most susceptible to fraudulent attacks even as their overall use continues to decline<br /> <br /> • Credit and debit cards experienced a decline in fraudulent activity, down from 43% in 2013 to 34% in 2014 Source: Associations for Financial Professionals (AFP) <br /> <br /> A recent fraud trend Financial Institutions are seeing a lot more of is Executive Impersonation. This is where an executive's email has been hacked and the Fraudster emails a direct report to initiate an 'emergency' wire. Please be diligent when doing wires and don't hesitate to ask questions around the request. M&amp;T has certainly become more diligent in the process as well.<br /> <br /> We've seen our customer's fall victim to wire scams where their supplier's email was hacked and intercepted wire instructions. They managed to redirect our customer to sending the wire to another set of beneficiary instructions.<br /> <br /> And as mentioned above, check and ACH fraud are still among the more popular schemes.<br /> <br /> There are several ways to mitigate your fraud exposure. Please read the attached White Paper to remain informed. M&amp;T strongly recommends implementing fraud prevention services, such as: <br /> <br /> ACH Monitor Fraud Review &amp; Approval helps protect business checking accounts from unauthorized ACH debits. For added security, M&amp;T offers two levels of service: block all ACH debits from your account or authorize only specific debits from selected vendors.<br /> <br /> Payee Positive Pay compares the payee name, dollar amounts, and serial numbers on checks presented for payment to similar information in a customer-provided check issue file. Variations in payee name, including spelling errors, as wells as variations in dollar amounts or serial numbers, are reported so that you can then review the suspect check for a pay or return decision.<br /> <br /> ACH Account Number Masking (UPIC) allows you to receive ACH credits without revealing sensitive bank account information. A unique account number and Federal Reserve routing number are assigned so that you do not need to reveal your confidential account number. ACH Account Number Masking account numbers cannot be used to debit your account via ACH transactions or used to access your account.<br /> <br /> Check Block can help protect your deposit account from fraudulent or unauthorized check writing activity. This service will automatically return all checks presented against your account, while allowing you to continue to send and receive electronic payments or deposits.<br /> <br /> ACH Debit Block will automatically return all ACH debits presented against your enrolled cash concentration account except pre-approved internal ACH debits (such as book transfers or loan payments).<br />