716 West Ave Austin, TX USA

Transcription

1 GLOBAL Headquarters the gregor building 716 West Ave Austin, TX USA

2 TABLE OF CONTENTS I. INTRODUCTION What Is?... 1 Credit Versus Non-Credit Losses... 1 Learning Objectives... 2 Video Supplements... 2 Review Questions and Final Examination... 2 II. LOSS PREVENTION AND RECOVERY PROGRAMS Loss Prevention Challenges... 5 Video... 5 Prevention Versus Recovery... 6 Developing a Fraud Prevention Program... 8 Ethical Culture... 8 Fraud Risk Assessments... 9 Internal Controls... 9 Video Understand the Institution s Role Employee Background Checks Reporting System Continuous Monitoring Oversight Awareness Training The Importance of Customer Identification Screening Technologies Review Questions III. HISTORY OF REGULATIONS Uniform Commercial Code, Article 4, Bank Deposits and Collections UCC Section 4-205: Depositary Bank Holder of Unindorsed Item UCC Section 4-208: Presentment Warranties UCC Section 4-302: Payor Bank s Responsibility for Late Return of Item UCC Section 4-401: When Bank May Charge Customer s Account UCC Section 4-403: Right to Close an Account UCC Section 4-403: Right to Stop Payment on a Check UCC Section 4-404: Bank Not Obliged to Pay a Check More Than Six Months Old UCC Section 4-406: Customer s Duty to Discover and Report Unauthorized Signature or Alteration Regulation CC Availability of Funds and Collection of Checks Subpart A General Subpart B Availability of Funds and Disclosure of Funds-Availability Policies Subpart C Collection of Checks Money Laundering Legislation The Bank Secrecy Act Money Laundering Offenses USA PATRIOT Act i

3 III. HISTORY OF REGULATIONS (CONT.) Identity Theft Legislation Identity Theft and Assumption Deterrence Act Gramm-Leach-Bliley Act Identity Theft Penalty Enhancement Act FACT Act s Identity Theft Red Flag Rule Review Questions IV. IDENTITY THEFT Identity Theft Methods and Preventions Dumpster Diving Mail Theft Stealing Wallets or Purses Social Engineering Phishing Video Video Typo Squatting or URL Hijacking Shoulder Surfing Skimming Bogus Charities and Raffles Fake Employment Opportunities Rental and Loan Applications The Internet Public Records Check or Debit Cards Hacking Pretexting Using an Accomplice Within the Organization Utility Companies, Health Clubs, and Schools Review Questions V. NEW ACCOUNT FRAUD AND ACCOUNT TAKEOVERS New Account Fraud Screening New Account Applicants Video Red Flags of New Account Fraud Measures to Detect and Prevent New Account Fraud Video Account Takeover Fraud Detection Prevention Video Review Questions VI. COUNTERFEIT CHECK ACTIVITY Creating Counterfeit Checks Routing Numbers ii

4 VI. COUNTERFEIT CHECK ACTIVITY (CONT.) MICR Line Printing Checks Counterfeit Cashier s Checks Gang or Group Activities: Account Information Development and Recruitment National Tiered Gangs Local Gangs International Gangs Obtaining Information to Counterfeit Checks How Checks Are Processed POS Check Processing Check Remote Deposit Capture Deterrence Measures Teller Line Early Warning Systems Thumbprint Signature Programs Positive Pay Reverse Positive Pay MICR Readers Safety Paper Direct Deposit Teller Cameras Tracking Identification Information Processing Software Systems RDC Controls Awareness Training Video Review Questions VII. FORGED INSTRUMENTS Forgery Types Simple Forgery Practice Forgery Tracing Forgery Automatic Check-Signing Mechanisms Forged Maker Red Flags of Forged Maker Schemes Forged Endorsement Types of Endorsements Forged Endorser Red Flags Split Deposit Fraud Other Forgery Schemes Dumpster Diving Payroll Forgeries Prevention and Detection Measures for Forged Instruments Business Check Verification Identity Verification iii

5 VII. FORGED INSTRUMENTS (CONT.) Writing Lacks Fluidity Signatures Do Not Fit End-to-End Signature Lines Carbon-Paper Residue on Checks Worn and Weathered Checks Different Colored Inks on the Check Face Drive-Up Window Deposits Misspelled Name of the Account Holder Felt-Tip Pens Memo Line Re-Endorsed Check Endorsement Guarantee Endorsement Verification Specific Endorsements Verification of True Account Holder Review the Serial Number Cash Back Is Not a Deposit Review Questions VIII. MISCELLANEOUS FRAUD SCHEMES Known Customer Unauthorized Withdrawals Methods Used to Become a Known Customer Prevention of Known Customer Unauthorized Withdrawals Check Kiting Red Flags of Check Kiting Schemes Prevention of Check Kiting Video Loan Kiting Loan Fraud Common Loan Fraud Schemes Red Flags of Loan Fraud Prevention of Loan Fraud Mortgage Loan Fraud Video Builder Bailout Property Flipping and Flopping Loan Falsifications Nominee Loans Straw Borrowers Air Loans Data Breaches Sources of Data Breaches Common Challenges with Protecting Data Data Breach Prevention Electronic Funds Transfer Fraud Electronic Bill Presentment and Payment Wire Transfers Payment Card Fraud iv

6 VIII. MISCELLANEOUS FRAUD SCHEMES (CONT.) True Name Fraud Check Washing Prevention of Check Washing Internal Fraud Schemes Conditions Conducive to Insider Fraud Internal Fraud Red Flags Common Internal Fraud Schemes Video General Prevention Measures Stop Payment Proper Endorsement Available Funds Alterations Date Verification Account Opening Date Transaction History Check Holds Recent Large Deposits Inspection of Negotiable Instruments Vigilance Among Employees Review Questions IX. AWARENESS TRAINING Introduction Who Should Attend? Frequency and Length of Fraud Awareness Training Comprehensive Training Topics to Cover in Training Understanding the Path of Least Resistance How to Develop, Market, and Deliver a Strong Awareness Program Seven-Step Approach for Developing an Awareness Training Program Educating the Consumer Review Questions X. LAW ENFORCEMENT LIAISON, NETWORKING, AND REPORT WRITING No Financial Institution Is an Island Video Case Development, Packaging, and Marketing Writing the Report The Type of Offense The Date the Offense Became Known The Dates of Offense Locations of Offense Suspect(s) Information Information About Any Complainants Information About Any Witnesses Investigated By v

7 X. LAW ENFORCEMENT LIAISON, NETWORKING, AND REPORT WRITING (CONT.) Body of the Report Reporting Suspicious Activity Financial Crimes Enforcement Network Bank Secrecy Act Suspicious Activity Reports Review Questions XI. APPENDIX: VIDEO TRANSCRIPTS XII. SOLUTIONS TO REVIEW QUESTIONS II. Loss Prevention and Recovery Programs III. History of Regulations IV. Identity Theft V. New Account Fraud and Account Takeovers VI. Counterfeit Check Activity VII. Forged Instruments VIII. Miscellaneous Fraud Schemes IX. Awareness Training X. Law Enforcement Liaison, Networking, and Report Writing XIII. FINAL EXAMINATION... E-1 XIV. INDEX... I-1 vi