Combatting Check and Deposit Account Fraud Conference 2002 Innovative Strategies and Tools to Prevent and Reduce Financial Loss November 11-13, 2002 Baltimore, Maryland Workshops November 10, 2002
Combatting Check and Deposit Account Fraud Conference 2002 November 11-13, 2002 Baltimore, Maryland Workshops November 10, 2002 As your company transitions to new and different forms of payments, your exposure to fraud grows exponentially. BAI s Combatting Check and Deposit Account Fraud Conference will give you the tools you need to manage losses from these new types of payments, while keeping you on top of the latest changes in the industry. This year s conference features sessions on Payment Systems Fraud, The USA PATRIOT Act, National Law Enforcement Fraud Prevention, Payment Electronification, Money Laundering Detection and Prevention and much more. For your added benefit, this conference also contains four pre-conference workshops to choose from, as well as Case History Clinics, Peer Group Discussion Sessions and a Product and where you can see the latest in products and technology from the industry s top solutions providers. Who Should Attend Reducing check fraud is a bank-wide issue. All bank professionals responsible for any aspect of fraud reduction and prevention should plan to attend this conference, including: check processing managers security officers auditors risk managers compliance officers systems and technology officers deposit product managers loss prevention professionals Keynote Address Payment System Fraud Prevention The Need for Industry Unification James E. Rohr Chairman, President and CEO PNC Financial Services Group Chairman, BITS BAI would like to thank the following sponsors of this event: Whether you are a novice to check and deposit account fraud or a seasoned loss prevention professional, this event offers educational session topics designed to meet your needs. We have assembled a talented group of professionals who will share their insights on today s most pressing issues and perspectives on where the industry is headed.
Conference Agenda Sunday, November 10, 2002 8:00 a.m. 5:00 p.m. CONFERENCE AND WORKSHOP REGISTRATION 8:00 a.m. 9:00 a.m. Continental Breakfast 9:00 a.m. 12:00 p.m. PRE-CONFERENCE WORKSHOP I Legal Issues in Check Fraud Mark Hargrave Partner Shook, Hardy & Bacon Allocation of check fraud losses under the UCC Effective use of your deposit agreement Hot topics in bank liability (posting order, cashing on-us items, state-ofthe-art as a defense) Proposed changes to the UCC and their impact on your bank PRE-CONFERENCE WORKSHOP II Check Fraud Basics John Askew Senior Associate Pratt & Associates Methods for identifying fraudulent checks Discussion of current fraud schemes Overview of image loss prevention Overview of Uniform Commercial Code 1:00 p.m. 4:00 p.m. PRE-CONFERENCE WORKSHOP III Advanced Check Fraud and Risk Management Strategies Jodi Pratt Managing Principal Carreker Corporation What next generation fraud prevention efforts must address The need for various metrics in measuring prevention benefits Some of the new technologies and how they will enhance fraud detection PRE-CONFERENCE WORKSHOP IV Internet Fraud Prevention Ronald E. Plesco, Jr., Esq. Senior Information Security Consultant L. Robert Kimball & Associates Review of current high-tech fraud crimes such as ID theft, hacking and skimming Live hacking of a banking customer via the Internet including a review of hacking tools Overview of federal laws and SAR requirements How an information security policy relates to the functions of risk management, audit, fraud prevention, check processing and security 5:00 p.m. 6:30 p.m. Opening Reception in the Product and Monday, November 11, 2002 8:00 a.m. 9:00 a.m. Conference Registration Continental Breakfast in the Product and 9:00 a.m. 10:00 a.m. Keynote Address: Payment System Fraud Prevention The Need for Industry Unification James E. Rohr Chairman, President and CEO PNC Financial Services Group Chairman, BITS 10:15 a.m. 11:00 a.m. Case History Clinics I Case History Clinics are sponsored by solutions providers and are an opportunity for conference attendees to hear topical presentations from leading companies and their financial services customers in a case history format. www.bai.org/ccf2002 11:15 a.m. 12:15 p.m. CONCURRENT SESSIONS I U.S. Treasury Initiatives to Reduce Government Check Fraud Alexis Rohan U.S. Treasury Department, Financial Management Service Security features of government checks Common altering techniques Counterfeiting techniques Detection methods Future strategies USA PATRIOT Act Impact on Fraud Doug Hodge BankOne Adam Elliott e-funds Corporation Interpreting the Act s regulations ID theft prevention Fraud prevention Employee training Consumer outreach Advanced Statistical Technology for Fraud Detection C. Anthony Kaus NuTech Solutions, Inc. Technology waves Transaction level tools Account level tools Genetic programming DNA computing Frontline Training to Prevent Fraud Dennis Tedder Union Bank Debbie Teryison Silicon Valley Bank How to get management support Tracking losses Identifying exposure points How to deliver training to the front line Training tips for tellers and new accounts
12:15 p.m. 1:30 p.m. Luncheon in the Product and 1:30 p.m. 2:30 p.m. CONCURRENT SESSIONS I (REPEATED) 2:45 p.m. 4:30 p.m. PEER GROUP DISCUSSION SESSIONS I (BY ASSET SIZE) Banks divided by asset size and led by industry experts will participate in roundtable discussions that will focus on current fraud risk issues and effective, practical solutions. Join your peers for a lively discussion on the current industry hot topics. 5:00 p.m. 6:30 p.m. Reception in the Product and Tuesday, November 12, 2002 8:00 a.m. 8:45 a.m. Continental Breakfast in the Product and 8:45 a.m. 10:00 a.m. General Session Panel Discussion National Law Enforcement Fraud Prevention Strategies Catherine Allen, Moderator BITS John Schick U.S. Postal Inspection Service David Condo Federal Bureau of Investigation 10:15 a.m. 11:00 a.m. CASE HISTORY CLINICS II 11:15 a.m. 12:15 p.m. CONCURRENT SESSIONS II Federal Reserve Fraud Reduction Initiatives Blake Prichard Federal Reserve Bank of Philadelphia Research results of self-authenticating technologies Techniques to identify fraud at point-of-sale Techniques to identify fraud at the bank of first deposit Federal Reserve initiatives for deploying multiple self-authenticating check security features BITS Fraud Prevention Initiatives Shirley Inscoe Wachovia Corporation Robert Jones Fleet Boston Financial Success through collaboration Negative employee database Identity fraud Truncation issues Benchmarking/successful strategies ACH e-check Fraud Prevention Nancy Grant NACHA The real story on e-check fraud Differences between check and e-check fraud Managing risk for merchants Managing risk for financial institutions e-check industry initiatives Money Laundering Detection and Prevention Lorraine Lawlor Senior Compliance Officer Office of Foreign Assets Control (OFAC) Role of OFAC Bank responsibilities for OFAC compliance Penalties for violating regulations Keeping current on OFAC issues Future initiatives www.bai.org/ccf2002 12:15 p.m. 1:30 p.m. Luncheon in the Product and 1:30 p.m. 2:30 p.m. CONCURRENT SESSIONS II (REPEATED) 2:45 p.m. 4:45 p.m. PEER GROUP DISCUSSION SESSIONS II (BY ASSET SIZE) 5:00 p.m. 6:30 p.m. Reception in the Product and Wednesday, November 13, 2002 7:30 a.m. 8:30 a.m. Continental Breakfast in the Product and 8:30 a.m. 9:30 a.m. GENERAL SESSION PANEL DISCUSSION Payment Electronification Addressing the Future of Risk Management Edward Potter, Moderator PSI Fraud Solutions Blake Prichard Federal Reserve Bank of Philadelphia Don Vattuone Wells Fargo Bank Steve Kopiec Primary Payments Systems, Inc. Phyllis Meyerson ECCHO 9:45 a.m. 10:45 a.m. Concurrent Sessions III Combatting Check Fraud in an Image Environment Joseph Triano Citigroup Touch points Bar codes Image security Legal issues New technologies
Using Encryption and Secure Seal Technology to Prevent Fraud Paul McPhail Northern Trust Company Theodore Umhoefer Fiserv Use of secure seal technology Decoding information from images Item level verification Key product features Product implementation Staffing and Organizing a Loss Prevention Group James Zardecki Sovereign Bank Overview of organization chart/functions Departmental information flow Justification of staffing Analyzing losses/corrective policies Communicating your value as a profit center 2002 ABA Check Fraud Survey Results Richard Clausen Bank of America Deposit account losses by category Deposit account losses by institution size Trending observations 1998 to 2002 Fraud prevention strategies ranked by effectiveness Electronic fraud ATM, ACH, Internet 11:00 a.m. 12:00 p.m. CONCURRENT SESSIONS III (REPEATED) 12:00 p.m. CONFERENCE ADJOURNMENT Learn more about fraud detection and prevention through BAI s elearning network. For a listing of online courses, visit www.bai.org/elearning. About BAI BAI is the leading professional organization devoted exclusively to improving the performance of financial services companies through strategic research and information, education and training. BAI provides a comprehensive range of end-to-end solutions to address strategic and operational problems facing financial services organizations. Offerings include conferences, graduate schools and a full range of online and text-based training courses. BAI provides benchmarking services and tackles complex strategic issues in the financial services industry through strategic research and Banking Strategies magazine. BAI is not a lobbying organization. BAI s mission is to provide high quality, relevant, objective information to enhance the organizational and individual performance of financial services companies. BAI is located in Chicago, IL. Registration Information FEES should be received no later October 28, 2002. Payment in U.S. dollars is to accompany all registrations. Confirmation of your registration is provided on your invoice. SUBSTITUTIONS are allowed at any time. Please notify us as soon as possible with your replacements information. CANCELLATIONS/REFUNDS: If you need to cancel for any reason, please notify Customer Service in writing at BAI, One North Franklin, Suite 1000, Chicago, Illinois 60606-3421. Or simply use our convenient fax line at 312-683-2373, or e-mail your cancellation to info@bai.org. You will receive a full refund if your cancellation request is made more than 30 days prior to the program. If you cancel within 1-30 days of the program date, you will receive either a full credit towards another BAI program (must be used within one year) or a refund less $200 processing fee. Sorry, cancellations made after the program begins are non-refundable. Of course, you may transfer your registration to another person prior to the start of the program. BAI reserves the right to change speakers or reschedule/cancel sessions when necessary. We are not responsible for airfare penalties that may be incurred due to cancellation of any BAI program. BAI recognizes the need to comply with the Americans with Disabilities Act. Please contact BAI Customer Service at 800-224-9889 (or 312-683-2464) so that we may accommodate any special needs you may have. Business casual attire is recommended. Continuing Professional Education (CPE) Credits BAI is registered with the National Association of State Boards of Accountancy (NASBA), as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN 37219-2417. NASBA phone number 615.880.4200 Web site: www.nasba.org. Recommended CPE Hours Combatting Check and Deposit Account Fraud Conference: 16 hours Pre-conference Workshops (half day): 3 hours each Method of Presentation: Interactive Lecture Level of Learning: Beginning to Advanced Field of Study: Specialized Knowledge Prerequisites: None Advance Preparation: None
Earn up to 22 CPE credit hours Non-Profit Organization U.S. Postage PAID Permit 286 Elk Grove, Illinois YES! Register me now for: CONFERENCE REGISTRATION SECTION Combatting Check and Deposit Account Fraud Conference 2002 November 11 13, 2002 Baltimore, MD Program #3568 Early Registration Discount SAVE $100 If registration is received on or before September 23, 2002: BAI Member Fee: $1,095 Non-member Fee: $1,295 If registration is received after September 23, 2002: Please mention the program and account numbers below when registering. BAI Member Fee: $1,195 Non-member Fee: $1,395 Team Discounts* Groups of three or more from the same organization, registering at the same time, can take an additional $100 off each registration fee.you must register your entire group at the same time, or you will not receive your discount. Pre-Conference Workshops* Sunday, November 10, 2002 9:00 a.m. 12:00 p.m. Legal Issues in Check Fraud (Program # 3565) Check Fraud Basics (Program # 3566) 1:00 p.m. 4:00 p.m. Advanced Check Fraud and Risk Management Strategies (Program # 3567) Internet Fraud Prevention (Program # 3564) Each Workshop Price BAI Member Fee: $295 per workshop Non-member Fee: $395 per workshop *Discounts do not apply to pre-conference workshops. Workshops are in addition to conference fees. Registration is easy... By Internet www.bai.org/ccf2002 By Phone 800-224-9889 (or 312-683-2464) By Fax 800-375-5543 (or 312-683-2373) By Mail BAI Department 77-6028 Chicago, Illinois 60678-6028 Photocopies of this form should be made to register additional attendees. Check Enclosed (Payable in U. S. Dollars to BAI) Charge It: VISA MasterCard American Express Diners Club Credit Card No. Expiration Date Authorized Signature Mr. Mrs. Ms. Miss First Name M.I. Last Name Title Area of Responsibility Company Address Mail Code / Suite / Floor / Room City State / Province Zip + 4 / Postal Code Country Area Code Phone Number Extension Fax Number Internet E-Mail Address Please provide us with your e-mail address, as well as your fax number, so that we can keep you updated on BAI conferences and seminars, graduate schools, in-house education, and a full range of online and text-based training courses. No, Please do not add me to your e-mail list HOTEL INFORMATION OFFICIAL HOTEL AND SPECIAL RATE(S) Baltimore Marriott Waterfront 700 Aliceanna St. Baltimore MD 21202 Hotel cut-off date: 10/10/02 Single: $195 Double: $195 To make your reservations, on a space available basis, visit our Web site at www.bai.org/events/housing.html and make your reservations online or contact the BAI Housing Bureau at 888-224-7696 (or 801-483-6592). Hotel reservation requests need to be received by 10/10/02. After this date, BAI s housing bureau will assign rooms on a space available basis. All hotel changes and cancellations need to be received by BAI s housing bureau no later than 10/10/02 either by fax at 801-483-6644 or by phone at 888-224-7696, (outside U.S. 801-483-6592). All cancellations received after 10/10/02 will be charged a $25 processing fee by the Hotel Reservation Deposit Service. All cancellations received less than 72 hours prior to arrival may be charged one night s room and tax by the hotel.