Prabhakar Tiwari ~ PT’s Post

Financial Fraud Alert: An Urgent Call for Vigilance by Banks and Consumers In a staggering revelation, Dreamplug Paytech Solutions, the parent company of Cred, became the victim of a ₹12 crore fraud executed over a mere 14 days through 37 unauthorized transactions. The breach exploited vulnerabilities stemming from unauthorized alterations to mobile numbers and email addresses linked to the company's Axis Bank accounts. Key Details of the Incident: ●Fraudsters submitted counterfeit documents to modify critical account details at Axis Bank. ●Verification lapses allowed approval despite irregularities in email addresses. OTPs were intercepted, enabling 37 unauthorized transactions to proceed undetected. ●Dreamplug Paytech Solutions uncovered the fraud through unusual activity monitoring. ●Authorities arrested four individuals, including an Axis Bank relationship manager. This alarming incident highlights the vulnerabilities in both banking systems and consumer practices. Such swift fraudulent activity underscores the need for heightened vigilance and stronger safeguards. 💡Lessons for Banks: 1️⃣Strengthen Internal Controls: Banks must implement rigorous verification protocols for sensitive account changes, including multi-factor authentication and identity validation. 2️⃣Monitor Employee Activities: Conduct regular audits and implement tracking mechanisms to prevent and detect insider involvement in fraudulent activities. 3️⃣Enhance Fraud Detection: Deploy AI-powered analytics to identify and respond to unusual account activity in real time, ensuring immediate action against potential threats. 💡Lessons for consumers: 1️⃣Monitor Account Activity: Frequently review account statements to detect and address unauthorized transactions promptly. 2️⃣Secure Communication: Confirm the authenticity of any notifications or requests for changes directly with your bank. 3️⃣Report Suspicious Activity: Notify your bank immediately of any unusual transactions to minimize potential losses. Financial vigilance is a shared duty—stay alert, secure your accounts, and act swiftly to protect against evolving threats. What additional measures you think FIs/Banks and conusmers should adopt? Let's discuss. Source: https://lnkd.in/gY53vevd (Image used belong to their respective owner(s)) #cybersecurity #financial #fraud #bankinghabits #cred #axisbank #financialvigilance

🕵️♂️ Fraud ring attacks and high-velocity attacks are two different beasts, but both can wreak havoc on your business if you're not prepared. The TL;DR is this — fraud rings are all about precision and patience, while high-velocity attacks rely on speed and brute force. Our guide goes into the nitty-gritty of each type of attack and shares actionable tips for triaging them. Learn more: https://lnkd.in/e5v4UdHK #fraudtypes #fraudmitigation #banking

With fraud on the rise and consumers increasingly concerned about identity theft, businesses must prioritize robust fraud prevention strategies. Hoonartek, a trusted Experian partner, offers comprehensive solutions to help you combat fraud and protect your customers' sensitive information. We enable advanced identity verification and fraud detection capabilities that empower you to make informed decisions and mitigate risks. Learn more about Hoonartek's Experian capabilities - https://lnkd.in/dPrwaHUX #datasecurity #riskmanagement #fintech #banking #Hoonartek #Experian #identityverification #frauddetection

Knock knock 👋🏻 Who's there? Fraud Prevention Specialist 🕵🏻♀️ Specialist who? One who's helping you to outsmart the scammers 😎 This is chapter #1 on Credit Card Frauds and here are some alarming stats: 🚨Credit card fraud increased by 161% over five years, becoming one of the most reported financial crimes. 🚨In 2023, Americans reported fraud losses exceeding $10 billion, with credit card fraud accounting for a significant portion. 🚨Someone in the U.S. falls victim to identity theft every 14 seconds! 🚨Whereas, India's fraud volumes have surged by 101% in the first five months of 2024, with significant growth in social engineering scams like voice frauds, now accounting for up to 40% of reported incidents. 🚨In 2024, cyber frauds cost the country over ₹1.7 billion, with a sharp increase in cases like credit card, debit card, and internet banking fraud. Well, let's make you a step ahead of the criminals! Stay tuned for more insights ⚡ #identitytheft #frauds #scams #stayalert #plasticcards #creditcardfrauds #creditcards #awareness #databreach

New research published by American Banker confirms what many #fraud professionals already suspect: "... while banks put significant protections against fraudsters in their digital channels, these same protections are severely lacking in call centers and branches. This may partially be explained by the need to protect against automated #fraudattacks. While a fraudster can blast many banks at once with the same fraud method in digital channels, the same is not true of call centers or branches, where a person must be present." Carter Pape's analysis continues: "Still, the difference in protections banks leverage inside branches and call centers versus digital channels present opportunities that fraudsters have been exploiting... in-branch fraud prevention systems are critical among a rise in fraud targeting branches — particularly #checkfraud. "Others have sounded this alarm, as well. Fraudsters are 'taking advantage of the weak spots,' according to Kerry Cantley, who joined identity and fraud prevention firm Mitek Systems last year after a 26-year career with Bank of America." Check out the full article--which is bursting with insightful, actionable insights--below.

Learnings from a Cyber Fraud Incident that Happened to a Blood Relative: This recent cyber fraud experience revealed that banks are central to facilitating such scams, yet they often lack proactive efforts to mitigate the damage. Although banks are committed to securing funds, certain key practices could greatly enhance protection, especially for vulnerable customers like senior citizens. In this case, the bank employee at the counter sensed distress in the account holder and overheard the conversations with the scamster. However, the employee assumed it was a medical emergency and processed the transfer, despite knowing the amount was being sent to a finance corporation, not a hospital. Here’s What Should Have Happened but Didn’t: 🔹 Verification on High-Value Transactions Banks should verify large transactions, especially when fixed deposits are broken or money is transferred to third-party current accounts. Often, bank managers call to promote schemes when large deposits are made but don’t initiate contact when a long-held fixed deposit is broken. This did not happen in this case. 🔹 Attention to Unusual Behavior Staff members at the bank should follow up with account holders who are acting strangely, especially if they are elderly and appear to be under the influence of a call. This did not happen in this case. 🔹 Joint Account Security For jointly held fixed deposits, banks should confirm consent from all holders before large transactions are processed. This did not happen in this case. 🔹 Information on Cyber Threats Banks should provide clear guidance on cyber scams, offering pamphlets or advisory messages. Unfortunately, many branches lack posters or pamphlets on fraud awareness. This did not happen in this case. 🔹 Restrictions on Large Credits to New Accounts Banks should restrict large credits into new current accounts temporarily, especially when received from individuals, and confirm with both sender and recipient. However, under pressure to open more accounts, staff are often opening current accounts for scam companies nationwide. These missed actions in this incident highlight areas where banks can strengthen their protocols to protect customers from fraud. #CyberFraudAwareness #BankSafety #ProtectSeniors #SecureBanking #DigitalFraud #FinancialSafety #BankingAwareness #Accountability #CyberCrimePrevention #CustomerProtection #StopCyberScams #FraudPrevention #StaySafeOnline #ProtectYourMoney #BankingResponsibility

Grandma is doomed😳 Banks are ‘Giving Up’ on Fraud: What Are Identity Companies Doing? As reported in The Sunday Times, victims of fraud are left devastated, with potential caps on payouts at £85,000. Ali Hussain and George Nixon spoke to individuals who have lost thousands, exposing a troubling reality: banks seem to be giving up on fighting fraud.🧐Alan Quayle stop the Api stuff and pay attention🤬 But the real question is, where are all these identity solution providers? Companies showcasing their identity technologies at events like **Identity Week America**—such as #MantraSmartIdentity #Neurotechnology and #Guidehouse- promise the future of secure identity, but if banks are surrendering to fraudsters, are these identity innovators truly stepping up? Or just taking more of the banks money? when come Shush Inc and tyntec university alumni Eddie DeCurtis Global Telco Consult (GTC) Mobile Ecosystem Forum to the rescue🧐 If banks are struggling, why aren’t identity companies taking a stronger lead? Where is Twilio Syniverse and their henchman at The Campaign Registry stand on all of this? WILL iconectiv buy the #tcr and solve that problem🧐 Now that they are owned by the second largest American 🇺🇸 private company in #USA and does Robert Vis and Bird really love ❤️ me for who I am? And when is Vin Micciche Thomas McCarthy-Howe and #vcon Vinnie coming to the rescue Ken Herron 🧐 #Identity #FraudPrevention #Banks #FinancialSecurity #IdentityWeekAmerica2024 #Mantra #Neurotechnology #Guidehouse #IdentitySolutions Sinch Infobip 📡 Mark Hay Mark J Harvey 马克 YouMail Inc. Noah Rafalko Eric J. Troutman Troutman Amin LLP Responsible Enterprises Against Consumer Harassment (R.E.A.C.H) CPaaS Acceleration Alliance CTIA Communications Fraud Control Association (CFCA) Somos, Inc. Cisco #standForGrandma #robocalls #sms Bandwidth Inc. netnumber Jeff Pulver Strolid, Inc. BT Group Sekura.id Prove WMC Global Proofpoint

🚨 Complex Fraud Scheme Unveiled: Meet Theodore Sapperstein, See Theodore Has a Problem, He’s Pleaded Guilty to a Sophisticated Fraud Scheme That Exploited the Automated Clearing House (ACH) Network’s Anti-Fraud Controls, Siphoning Millions of Dollars From Unsuspecting Victims. Between August 2020 and August 2021, Sapperstein and two co-conspirators ran a coordinated operation involving thousands of micro-debits—low-value transactions ranging from $0.99 to $1.85 to artificially suppress their return rates, enabling them to fly under the radar of ACH fraud detection systems. How the Scheme Worked: • ACH Fraud Controls: NACHA, the organization overseeing the ACH, flags accounts that have more than 0.5% unauthorized return debits. The fraudsters used shell companies to perform low-value “micro-debits” between accounts they controlled, keeping the unauthorized return rates below the threshold. • Unauthorized Debits: In parallel, they secretly debited victims’ accounts $45 a month for fictitious services, causing $1.5 million in losses. • Manipulation of Fraud Controls: By conducting high volumes of seemingly legitimate transactions, they suppressed the rate of returns, evading detection from the banks and ACH systems. • Covering Their Tracks: Sapperstein and his co-conspirators set up call centers in Ukraine to placate angry victims and provided fake consumer authorization records to any banks that questioned the charges. This case underscores the growing complexity of fraud schemes in the financial industry, exploiting loopholes in the system to bypass controls. The manipulation of micro-debits shows how bad actors can game transaction thresholds, an area that anti-fraud teams will need to scrutinize more closely going forward. Key Takeaways: • The fraudsters used micro-debits to artificially keep unauthorized transaction rates low. • Victims unknowingly had money debited from their accounts for services they never ordered. • This scheme cost victims millions and led to $1.5 million in confirmed losses. What can banks and financial institutions do? • Monitor transaction patterns, not just large transactions but also unusually low-value transactions that could signal fraud. • Implement enhanced detection tools that scrutinize both the volume and value of transactions for anomalies. #financialfraud #cybercrime #microdebits #antifraud #compliance #financialcrime #banksecurity #frauddetection #financialmarkets #tm

An unconventional truth of fraud prevention: Identity verification and fraud prevention are not the same — even though they’re often confused. The vast majority of fraud actually comes from users who are fully verified. In the US, for example, these are two common types we see from fully verified users: 1. Stolen Identity fraud Given the data breaches at credit bureaus, it's easy for a fraudster to impersonate someone as they have access to full SSN, name, address and date of birth. 2. Payment fraud Once you pass KYC, you can link a stolen card easily as card networks don't check for cardholder name. You can link a stolen bank as well, as most banks in the US don't have 2FA. So a wrongly approved KYC then translates into payment fraud. What’s the broader importance here? Fraud detection doesn’t stop at KYC. In fact, you could argue fraud detection after KYC is even more important.

🚨 Attention: A new threat is emerging within the digital landscape, called Synthetic Identity Fraud! While the name might sound peculiar, the danger it presents is incredibly real. Synthetic Identity Fraud, unlike traditional identity theft, involves the creation of entirely fabricated identities by melding real and counterfeit information. This intricate blend makes detection exceedingly tricky and poses a substantial challenge for various industries, including banking, finance, fintech. Recent reports indicate that Synthetic Identity Fraud is rapidly becoming one of the most prevalent financial crimes in the United States, with projected losses reaching an alarming $20 billion within the coming years. This threat isn't confined to one region – it's impacting firms in India and beyond. Here at Jukshio, we recognize the severity of this issue and are dedicated to offering seamless and adaptable identity verification solutions to organizations spanning multiple sectors. Whether in banking, edu-tech, telecom, digital lending, crypto, e-gaming, logistics, or insurance, we're committed to assisting businesses in thwarting Synthetic Identity Fraud and shielding their operations and clientele from harm. Our mission is straightforward: to empower organizations to combat Synthetic Identity Fraud and fortify their defenses against fraudulent activities. Don't let the specters of fraud haunt your enterprise. Contact #TeamJukshio today to explore how we can safeguard your organization against the dangers of Synthetic Identity Fraud. www.jukshio.com #SyntheticIdentityFraud #IdentityVerification #FraudPrevention #Jukshio #Security #RiskManagement #LinkedInMarketing Sukrit Bhattacharya Ganesh Tayi Rajasekharuni Kishore  Ribhu Ranjan Saha Taran Radia Shivani Phanindra Katakam  Saurabh Chakrabarti Sridhar Tirumala Ishita Sharma