How to Protect Consumers From Fraud Risks

🚨 Boom! I caught another one! 🚨 What looks like a regular credit card machine turned out to be hiding a skimmer—a device designed to steal sensitive cardholder information. Skimmers are becoming increasingly sophisticated, and if you run a business with card readers, it’s crucial to stay vigilant. Why does this matter? Credit card fraud can not only hurt your customers but also damage your business's reputation and lead to costly chargebacks. Protecting your payment systems is just as important as securing your network. How often should you check your machines? 👉 Daily checks: Make it part of your opening or closing routine. 👉 After maintenance: Always inspect after technicians work on or around your machines. 👉 Random spot checks: Add an extra layer of unpredictability to your inspections. How to identify skimmers: ✔️ Look for signs of tampering: Misaligned parts, unusual gaps, or devices that don’t match the rest of the machine. ✔️ Wiggle test: Gently tug at the card slot or keypad. If something feels loose or moves, it could be a skimmer. ✔️ Compare machines: If you have multiple card readers, check for inconsistencies. ✔️ Inspect for overlays: Skimmers are often placed over the existing card reader or keypad. Pro tip: Invest in secure payment terminals and ensure your staff is trained to identify potential tampering. Staying one step ahead of fraudsters can save your business and customers from significant headaches. Have you ever caught a skimmer on your payment systems? Let’s discuss how to protect your business in the comments! 💳🔒 #Cybersecurity #FraudPrevention #SmallBusinessTips #CreditCardSecurity #StayVigilant

Fraud grows unchecked without anyone noticing? That's exactly what happened to one of my clients. Because his businesses basic internal controls were non-existent, allowing a single employee to process payments, reconcile accounts, and destroy evidence without oversight. Then we helped him, here’s how: 1️⃣ Segregation of Duties – Strategically divide financial responsibilities so no single person controls multiple critical functions, creating natural checks and balances that make fraud exponentially more difficult. 2️⃣ Authorization Hierarchy – Establish clear approval thresholds and verification protocols for transactions, ensuring appropriate scrutiny based on risk and materiality. 3️⃣ Documentation Standards – Implement rigorous record-keeping requirements that create audit trails for every significant transaction, eliminating gaps where impropriety can hide. 4️⃣ Independent Reconciliation – Deploy regular account reconciliations performed by someone other than the transaction processor, catching discrepancies before they become systemic problems. 5️⃣ Periodic Internal Audits – Conduct surprise reviews of financial processes and transactions, creating accountability and deterrence through unpredictable oversight. The results?  ✅ Fraud risk reduced by 94%  ✅ Operational errors decreased by 76%  ✅ Stakeholder confidence strengthened Later, the business owner confessed: "I trusted completely and verified never. I didn't realize that internal controls aren't about suspicion, they're about creating systems that protect everyone, including honest employees." Strong internal controls make fraud difficult and detection inevitable. Weak controls create temptation and opportunity. I help businesses implement effective internal controls without bureaucratic complexity. DM "Controls" to safeguard your financial future. #internalcontrols  #finance  #accounting 

This article highlights a St. Louis federal court indicted 14 North Korean nationals for allegedly using false identities to secure remote IT jobs at U.S. companies and nonprofits. Working through DPRK-controlled firms in China and Russia, the suspects are accused of violating U.S. sanctions and committing crimes such as wire fraud, money laundering, and identity theft. Their actions involved masking their true nationalities and locations to gain unauthorized access and financial benefits. To prevent similar schemes from affecting you businesses, we recommend a multi-layered approach to security, recruitment, and compliance practices. Below are key measures: 1. Enhanced Recruitment and Background Verification - Identity Verification: Implement strict verification procedures, including checking legal identification and performing background and reference checks. Geolocation Monitoring: Use tools to verify candidates’ actual geographic locations. Require in-person interviews for critical roles. - Portfolio Validation: Request verifiable references and cross-check submitted credentials or work samples with previous employers. - Deepfake Detection Tools: Analyze video interviews for signs of deepfake manipulation, such as unnatural facial movements, mismatched audio-visual syncing, or artifacts in the video. - Vendor Assessments: Conduct due diligence on contractors, especially in IT services, to ensure they comply with sanctions and security requirements. 2. Cybersecurity and Fraud Prevention - Access Control: Limit access to sensitive data and systems based on job roles and implement zero-trust security principles. - Network Monitoring: Monitor for suspicious activity, such as access from IPs associated with VPNs or high-risk countries. - Two-Factor Authentication (2FA): Enforce 2FA for all employee accounts to secure logins and prevent unauthorized access. - Device Management: Require company-issued devices with endpoint protection for remote work to prevent external control. - AI and Behavioral Analytics: Monitor employee behavior for anomalies such as unusual working hours, repeated access to restricted data, or large data downloads. 3. Employee Training and Incident Response - Cybersecurity Awareness: Regularly train employees on recognizing phishing, social engineering, and fraud attempts, using simulations to enhance awareness of emerging threats like deepfakes. - Incident Management and Reporting: Develop a clear plan to handle cybersecurity or fraud incidents, including internal investigations and containment protocols. - Cross-Functional Drills and Communication: Conduct company-wide simulations to test response plans and promote a culture of security through leadership-driven initiatives. #Cybersecurity #HumanResources #Deepfake #Recruiting #InsiderThreats

Let’s take a moment to address a serious issue that affects many customers: credit card scams. With the rise of digital transactions, it’s more important than ever to stay vigilant and informed. As a technology leader at Chase, I wanted to share a few tips to help you safeguard your financial information: 1. Monitor Your Accounts: Regularly check your bank and credit card statements for any unauthorized transactions. Report any suspicious activity immediately. 2. Utilize Chase's Credit Journey ID Monitoring: Take advantage of our Credit Journey service, which provides free credit monitoring and alerts calling out changes to your credit report. Anyone can use this free tool can help you spot potential fraud early. You don’t have to be a Chase customer. 3. Beware of Phishing Scams: Be cautious of unsolicited emails, texts or phone calls asking for personal information. Always verify the source before sharing any sensitive data. 4. Use Strong Passwords: Create complex passwords for your online accounts and change them regularly. Consider using a password manager to keep track of them securely. 5. Enable Two-Factor Authentication: Adding an extra layer of security can significantly reduce the risk of fraud. Whenever possible, enable two-factor authentication on your financial accounts. 6. Stay Informed: Educate yourself about the latest scams and tactics used by fraudsters. Knowledge is one of the best defenses against becoming a victim. At Chase, we are committed to keeping your information safe and secure. Our advanced security measures help protect your accounts, but your vigilance is crucial. Together, we can combat credit card fraud and keep our communities safe. Check out this recent post to learn more about steps you can take if you suspect your identity has been stolen. Stay alert and protect your financial well-being! #FraudPrevention #SecurityFirst #CreditJourney

🚨 KYC Alone Isn't Enough Anymore 🚨 The rise of deepfake technology is making traditional KYC (Know Your Customer) processes vulnerable. A recent demo of a tool called ProKYC highlighted how easily fraudsters can bypass KYC checks with AI-generated identities, allowing them to slip through systems unnoticed. Thanks to Frank McKenna for your article on the topic in this weeks newsletter(link in comments) 💡 So, what’s the solution? While KYC is still essential from a regulatory standpoint, it’s no longer sufficient on its own. Technology like Device intelligence is now even more critical in fraud prevention. By tracking device behavior and unique attributes in real time, companies can detect and block fraudulent activities that KYC will miss due to AI. 🔒 Why is device identification important? Real Time Continuous Monitoring: Unlike KYC, which is a point-in-time verification, device intelligence continually monitors users throughout their sessions. Behavioral Analysis: It detects patterns and flags unusual behavior that deepfake AI tools can’t easily replicate. Anonymity Protection: Device identification makes it harder for fraudsters to hide behind fake identities or manipulated data and it does not require PII data to be effective. 👊 Bottom Line: Fraudsters are becoming more sophisticated. To stay ahead, businesses need to adopt multi-layered security that should start with device intelligence alongside other technologies like KYC. ➡️ Video demo in comments #FraudPrevention #CyberSecurity #AI #DeviceIntelligence #KYC

Carding is Back- But with a Twist (Shout out to Brian Krebs for highlighting this.) #Cyber criminals, primarily from China, are reinventing card fraud by turning stolen payment card data into mobile wallets - and it all starts with a simple phishing text. How the Scam Works: The target receives an iMessage (for iPhones) or an RCS text message (for Android phones) impersonating USPS or a toll road operator. The message / text indicates that the target has an unpaid fee. Clicking the link leads the target to a fake payment page & prompts them to enter their card details. The site requests a one-time passcode (OTP) to link their card to a scammer’s Apple/Google Pay wallet. Criminals then sell or use these mobile wallets for fraud. How They Cash Out: 1. They sell phones preloaded with stolen #digital wallets running fraudulent transactions through fake Stripe/Zelle businesses. 2. They use “Ghost Tap” NFC relay apps to make purchases remotely. (Ghost Tap" #fraud allows criminals to remotely make tap-to-pay purchases using stolen card details by relaying a transaction from their phone to a real payment terminal anywhere in the world. This makes fraudulent transactions appear legitimate, bypassing traditional fraud detection.) The Scale of the Problem: #Security researchers estimate ~ $15B annually. The fraud cycle has shrunk from 90 days to roughly 1 week, which makes detection and prevention a challenge. How to Protect Yourself: Avoid clicking on unexpected USPS/toll payment links - verify DIRECTLY with the provider. Be cautious if you receive a random one-time passcode (OTP) request for adding a card to a mobile wallet. Another thought along #technology lines - Financial institutions should move away from SMS OTPs and require in-app authentication for mobile wallet provisioning. #IdentityTheft

Fintech and payment nerds, when you see your frends and family over the holiday please, please, please caution them against financial fraud. Coach them so that they notice suspicious behavior and empower them to resist! Here is some guidance to share (links to add'l resources in the comments): 1️⃣ Red Flags🚩 👉Unsolicited contact via email, phone, or text. 👉High-pressure tactics demanding immediate action. 👉Offers that seem too good to be true. 👉Requests for sensitive information like Social Security numbers or bank details. 👉Payment demands via gift cards, cryptocurrency, or wire transfers. 2️⃣ Protect Your Personal Information 👉Verify requests before sharing personal or financial details. 👉Use strong passwords and two-factor authentication. 👉Avoid entering sensitive data over public Wi-Fi. 3️⃣ Learn to Recognize Common Scams 👉Phishing Scams: Fraudulent emails/messages that steal your information. 👉Tech Support Scams: Fake alerts claiming your device is compromised. 👉Pig-Butchering Scams: Long-term grooming on social media to push fake investments. 4️⃣ Monitor Your Financial Activity 👉Regularly review bank and credit card statements. 👉Set up alerts for suspicious account activity. 👉Consider a credit freeze to prevent identity theft. 5️⃣ Protect Older Adults 👉Share fraud prevention tips with older family members. 👉Encourage open communication about suspicious activity. 6️⃣Take Action Against Fraud 👉Report incidents to your bank, credit union, or local authorities. 👉Notify the Federal Trade Commission (FTC) via reportfraud.ftc.gov. 👉Change passwords and secure compromised accounts. Bottom line: 👉Don’t trust unsolicited offers or deals that require urgent action. 👉Always verify the identity of individuals or organizations contacting you. 👉Stay informed about emerging scams and update devices regularly for security. 👉 Finally, do not be ashamed to alert someone and ask for help if you get emeshed in a scam Use your expertise and whatever influence you may have to spread the word. The last thing you want is to be on the receiving end of a panicked phone call from a loved one.