ID THEFT IS
ON THE
DECLINE. THE
THREATS TO
BANKS ARE
NOT.
Its conservative retail
strategy is still risky
Toovio preps an FI push
for real-time marketing
AML and
Human
Traf;cking
ANALYSIS
Cash patterns are clues AUTOMATION HERO Alpine Bank’s Deb Eisfeller’s lending tech project is one of this year’s top Community Bank IT initiatives COVER STORY PAGE 18
ANTI-MONEY LAUNDERING (AML)
vendors are tweaking their
systems to spot suspicious
activity pegged to human
trafficking while the govern-
ment continues to promote
more awareness of the crime
by informing banks and their
vendors of its telltale signs.
While the numbers are
controversial—it’s basically
impossible to attain an accu-
rate count when so few report
the crime—the U.N estimates
that human trafficking rep-
resents a $32 billion annual
global trade that, according
to the U.S. State Department,
forces 12. 3 million adults
and children into slave labor
or prostitution. Some experts
say trafficking involving the
sex trade is one of the fastest
growing criminal enterprises.
Governments have there-
fore tried to help both AML
vendors and banks spot po-
tential human trafficking pat-
terns in the money nexus to
aid in stemming the crime
and in prosecuting its alleged
purveyors.
Shifting Gears, page 25
FFIEC to
Revisit Online
Protection
Pending FFIEC guidance for online banking calls
for stronger authentication and more disclosure
SECURITY
BANKS’ SECURITY FOR ONLINE ACCOUNTS HASN’T KEPT PACE WITH
the threat landscape, regulators say, and sources say the FFIEC
may soon update its 1995 guidance on securing online banking
transactions.
The FFIEC is expected to issue an update that will call on banks
to perform at least annual risk assessments and inform consum-
ers and corporate customers about risks and coverages in case of
losses. The guidance—at least in its draft form—also dings simple
device identification and simple security questions as no longer
adequate forms of authentication to meet current threats.
The timing of the FFIEC’s update to the 1995 “Authentication
in an Internet Banking Environment” isn’t known, but an early
draft of the new guidance obtained by Bank Technology News is
dated mid-December, and regulatory watchers have been antici-
Leading Off, page 11
A Hub for New Channels
New processing stresses shine a renewed light on payment services hubs
PAYMENTS
BY THE
NUMBERS
ONE OF THE LOUDEST CURRENT
battles among banks is the
race to expand the adoption
of mobile and other auto-
mated point-of-sale and real-
time payments. While the
payment apps will get their
share of hype, the contest
will ultimately be won by
the institutions that can best
achieve the cross channel/
cross silo processing triple
crown: speed, accuracy and
seamless execution.
Risk Bonus
of ;nancial insti-
tutions reported
they had com-
pletely or substantially incorporated
risk management considerations into
overall performance goals and
compensation, according to Deloitte.
