compared to the year before. The survey included businesses in the retail, financial, insurance and health care
“Friendly fraud” by customers, often in the form of chargeback fraud, saw a huge spike, with double the number
of businesses reporting it in 2017 than in 2016. Account takeover fraud, phishing and ACH or wire fraud were
also rising in prevalence. Financial services firms reported higher levels of friendly fraud and synthetic identity
fraud – in which fraudsters create an artificial identity out of multiple pieces of real and fabricated data – than
businesses did overall.
The growing imperative to protect against fraud is also making financial firms more concerned about creating
friction in the customer experience. Nearly half of financial companies surveyed said that reducing friction is a
challenge to their business. Read more.
OTHER FRAUD/SECURITY NEWS
► FS-ISAC Weekly Risk Summary Report
Recent FS-ISAC weekly Risk Summary Reports have highlighted the following:
Reported $4.4 million moved to accounts in US, UK and Japan via fraudulent SWIFT transfers;
Verbal passwords for over-the-phone banking authentication;
Banking trojan threatens financial institution’s employees’ email account;
Reported 164 percent increase in records accessed through data breaches over the last six months of
2016 and first six months of 2017;
Malware attack on Android banking-app users; and more.
► ABA members can access the FS-ISAC’s Weekly Risk Summary Report by visiting the FS-ISAC section of
the ABA Cybersecurity/Fraud page.
► Ten Tips to Help Card Issuers Thwart Fraud During the Holidays
ABA Endorsed Solutions provider Rippleshot recently released an infographic highlighting 10 steps card
issuers can take to help mitigate fraud attempts during the holidays. The tips include educating consumers on
safe online shopping practices; encouraging customers to regularly check their statements and setup account
alerts; training employees to regularly check ATMs for skimming devices; and conducting daily and weekly
card monitoring and reporting to detect compromised cards. Download the infographic.
GOP, DEMOCRATIC SENATORS STRIKE BIPARTISAN REG RELIEF DEAL
Numerous regulatory relief proposals long backed by ABA as part of its Blueprint for Growth are included in a
bipartisan deal announced on November 14 by Senate Banking Committee Chairman Mike Crapo (R-ID). The
compromise legislative package is supported by nine Republicans and nine Democrats – led by Banking
Committee members Joe Donnelly (D-IN), Heidi Heitkamp (D-ND), Jon Tester (D-MT) and Mark Warner (D-VA) –
providing enough votes to clear procedural hurdles on the Senate floor.
ABA’s Rob Nichols welcomed the announcement of the deal, which he said “shows that lawmakers of good faith
from both parties can agree on commonsense changes to allow banks to better serve their customers and
communities.” He added that it is an “important first step in right-sizing the rules for America’s banks” and urged
lawmakers to support the package.
Among many other provisions, the bill would designate all mortgages held in portfolio as Qualified Mortgages for
banks with less than $10 billion in assets, raise the threshold for designation as a systemically important financial
institution from $50 billion to $250 billion in assets, end stress tests entirely for banks with under $100 billion in