Tj horan, author at fico u s anti money laundering laws

I was looking over my blog archives the other day and read this chestnut from december 2015: “with the introduction of EMV in the US, both [card not present and application fraud] are up – especially the sophistication of the synthetic identities used in application fraud.” well, isn’t that the truth. Fast-forward a year, to the fourth quarter of 2016, when financial losses stemming from application fraud, which includes the creation of synthetic identities, grew by 42%. Online lenders are being hard-hit; fraudsters are applying for multiple loans within minutes, with no intentions of repaying them. Customer expectations create fraud opportunities here’s what’s happening: consumers expect instant gratification and there are many, many companies willing to indulge them: uber, amazon, seamless, ad infinitum.

Those expectations have transferred directly to lending; customers expect ever-faster loan approvals, and online lenders are happy to oblige.U s anti money laundering laws loans that used to take three days to… [read more]

Posted by TJ horan in fraud security

4 comments fraud security hacked atms lead to 70% rise in debit card fraud

On groundhog day 2017, I was thinking that the payments industry is a lot like groundhog day, the movie. There are an awful lot of repeating themes in the payments world. And in the best case, they can teach us invaluable lessons. Payments speed is one of those recurring themes. Four years ago, we at FICO started saying it’s time for banks to upgrade fraud protection in their retail banking departments. Otherwise, financial institutions could wake up one day—groundhog day?—and realize that it’s too late; fraudsters will have figured out how to hijack funds flowing out of checking accounts. Today could be that day. Are banks truly ready for same-day ACH? Between the same day ACH initiative launch on september 23, 2016 and december 31, 2016, there were more than 13 million same-day ACH transactions.U s anti money laundering laws A significant 14% were person-to-person (P2P), a pretty astonishing amount for a brand-new payment type…. [read more]

Posted by TJ horan in fraud security

Leave a comment fraud security AI meets AML: how smart analytics fight money laundering

In the last six months alone, I think I’ve read at least 1,000 wall street journal articles on artificial intelligence (AI) and its technologic cousins: robots, drones and self-driving cars. Between those three things, I’m pretty sure most of the jobs humans have today will change. Some will even disappear. There is so much noise about AI and its ilk that, in my opinion, it’s important for us in the worlds of fraud and compliance to take a step back and focus on how we can implement this incredibly advanced technology in the context of our current technology and regulatory environment. For example, while it’s pretty cool how AI is now being leveraged to play poker and beat professionals in real games, it’s a distraction from the discussion of ways that AI can help right now, today, for real business challenges.U s anti money laundering laws one of the places where AI can make a… [read more]

Posted by TJ horan in analytics optimization, fraud security, risk compliance

Leave a comment fraud security report from frankfurt: compliance as competitive advantage

Yes, it’s true. When it comes to anti-money laundering (AML) and financial crime, the right strategy, people resources and technology can transform the compliance function into a competitive advantage. That was a big theme at the 13th annual FICO TONBELLER user group meeting I recently spoke at in frankfurt, germany. It was my second TONBELLER user group, and I was excited to return. This year, as in 2015, I was intrigued to meet compliance professionals from around the globe, talking about the challenges in their markets. The downstream impact of financial crime one of the folks I met is stefan segerer of finanz informatik, a german company that provides IT solutions to savings banks in germany.U s anti money laundering laws in this FICO video stefan talks about how finanz informatik uses FICO TONBELLER solutions to protect more than 430 banks from financial crimes. Stefan sums up the impact nicely: “money laundering costs the financial… [read more]

Posted by TJ horan in fraud security, risk compliance

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I was looking over my blog archives the other day and read this chestnut from december 2015: “with the introduction of EMV in the US, both [card not present and application fraud] are up – especially the sophistication of the synthetic identities used in application fraud.” well, isn’t that the truth. Fast-forward a year, to the fourth quarter of 2016, when financial losses stemming from application fraud, which includes the creation of synthetic identities, grew by 42%. Online lenders are being hard-hit; fraudsters are applying for multiple loans within minutes, with no intentions of repaying them.U s anti money laundering laws customer expectations create fraud opportunities here’s what’s happening: consumers expect instant gratification and there are many, many companies willing to indulge them: uber, amazon, seamless, ad infinitum. Those expectations have transferred directly to lending; customers expect ever-faster loan approvals, and online lenders are happy to oblige. Loans that used to take three days to… [read more]

Posted by TJ horan in fraud security

4 comments fraud security hacked atms lead to 70% rise in debit card fraud

On groundhog day 2017, I was thinking that the payments industry is a lot like groundhog day, the movie. There are an awful lot of repeating themes in the payments world. And in the best case, they can teach us invaluable lessons. Payments speed is one of those recurring themes. Four years ago, we at FICO started saying it’s time for banks to upgrade fraud protection in their retail banking departments.U s anti money laundering laws otherwise, financial institutions could wake up one day—groundhog day?—and realize that it’s too late; fraudsters will have figured out how to hijack funds flowing out of checking accounts. Today could be that day. Are banks truly ready for same-day ACH? Between the same day ACH initiative launch on september 23, 2016 and december 31, 2016, there were more than 13 million same-day ACH transactions. A significant 14% were person-to-person (P2P), a pretty astonishing amount for a brand-new payment type…. [read more]

Posted by TJ horan in fraud security

Leave a comment fraud security AI meets AML: how smart analytics fight money laundering

In the last six months alone, I think I’ve read at least 1,000 wall street journal articles on artificial intelligence (AI) and its technologic cousins: robots, drones and self-driving cars. Between those three things, I’m pretty sure most of the jobs humans have today will change.U s anti money laundering laws some will even disappear. There is so much noise about AI and its ilk that, in my opinion, it’s important for us in the worlds of fraud and compliance to take a step back and focus on how we can implement this incredibly advanced technology in the context of our current technology and regulatory environment. For example, while it’s pretty cool how AI is now being leveraged to play poker and beat professionals in real games, it’s a distraction from the discussion of ways that AI can help right now, today, for real business challenges. One of the places where AI can make a… [read more]

Posted by TJ horan in analytics optimization, fraud security, risk compliance

Leave a comment fraud security report from frankfurt: compliance as competitive advantage

Yes, it’s true. When it comes to anti-money laundering (AML) and financial crime, the right strategy, people resources and technology can transform the compliance function into a competitive advantage.U s anti money laundering laws that was a big theme at the 13th annual FICO TONBELLER user group meeting I recently spoke at in frankfurt, germany. It was my second TONBELLER user group, and I was excited to return. This year, as in 2015, I was intrigued to meet compliance professionals from around the globe, talking about the challenges in their markets. The downstream impact of financial crime one of the folks I met is stefan segerer of finanz informatik, a german company that provides IT solutions to savings banks in germany. In this FICO video stefan talks about how finanz informatik uses FICO TONBELLER solutions to protect more than 430 banks from financial crimes. Stefan sums up the impact nicely: “money laundering costs the financial… [read more]

Posted by TJ horan in fraud security, risk compliance

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