This is fourth question in our five-part series on the FFIEC guidance and what it means Internet banking. Check back each day this week for more Q&A on what you need to know and how to prepare for the January 2012 deadline.  If you missed parts 1-3, there's no time to waste, check them out here: Go to question one: What does “multi-factor” authentication actually mean? Go to question two: Who does this guidance affect?  And does it affect each type  of credit grantor/ lender differently? Go to question three: What does “layered security” actually mean? Today's Q&A: What will the regulation do to help mitigate fraud risk in the near-term, and long-term? The FFIEC’s guidance will encourage financial institutions to re-examine their processes. The guidance is an important reinforcement of several critical ideas: Fraud losses undermine faith in our financial system by exposing vulnerabilities in the way we exchange goods, services and currencies. It is important that members of the financial services community understand their role in protecting our economy from fraud. Fraud is not the result of a static set of tactics employed by criminals. Fraud tactics evolve constantly and the tools that combat them have to evolve as well.   Considering the impact that technology is having on commerce, it is more important than ever to review the processes that we once thought made our businesses “safe.” The architecture and flexibility of fraud prevention “capabilities” is a weapon unto itself. The guidance provides a perspective on why it is important to be able to understand the risk and to respond accordingly. At the end of the day, the guidance is less about a need to take a specific action—and more about the “capability” to recognize when those actions are needed, and how they should be structured so that high-risk actions are met with strong and sophisticated defenses. _____________ Look for part five, the final in our series tomorrow. 

  This is third question in our five-part series on the FFIEC guidance and what it means Internet banking.  If you missed the firstand second question, you can still view – our answer isn't going anywhere.  Check back each day this week for more Q&A on what you need to know and how to prepare for the January 2012 deadline. Question: Who does this guidance affect? And does it affect each type of credit grantor/ lender differently? The guidance pertains to all financial institutions in the US that fall under the FFIEC’s influence. While the guidance specifically mentions authenticating in an on-line environment, it’s clear that the overall approach advocated by the FFIEC applies to authentication in any environment. As fraud professionals know, strengthening the defenses in the on-line environment will drive the same fraud tactics to other channels. The best way to apply this guidance is to understand its intent and apply it across call centers and in-person interactions as well. _____________ Look for part four of our five-part series tomorrow.  If you have a related question that needs an answer, submit in the comments field below and we'll answer those questions too.  Chances are if you are questioning something, others are too – so let's cover it here!  Or, if you would prefer to speak with one of our Fraud Business Consultants directly, complete a contact form and we'll follow up promptly.  

This is second question in our five-part series on the FFIEC guidance and what it means Internet banking.  If you missed the first question, don't worry, you can still go back.  Check back each day this week for more Q&A on what you need to know and how to prepare for the January 2012 deadline. Question: What does “multi-factor” authentication actually mean?    “Multi- Factor” authentication refers to the combination of different security requirements that would be unlikely to be compromised at the same time. A simple example of multi-factor authentication is the use of a debit card at an ATM machine.   The plastic debit card is an item that you must physically possess to withdraw cash, but the transaction also requires the PIN number to complete the transaction. The card is one factor, the PIN is a second. The two combine to deliver a multi-factor authentication. Even if the customer loses their card, it (theoretically) can’t be used to withdraw cash from the ATM machine without the PIN. _____________ Look for part three of our five-part series tomorrow.