New legislation may provide fraudsters with legal loopholes.
The Credit Card Accountability, Responsibility, and Disclosure (CARD) Act includes regulation that prohibits providing information about newly opened accounts before they are activated by customers, which could create an increase in fraudulent credit card applications.
Press Release:Legislation in the works that could affect future trends in Fraud
Red Bank, Feb. 19, 2009 /The FraudBlog Newsletter/ - The current economic crisis is affecting all of us, but could it also be creating new loopholes for fraudsters to exploit? You may be surprised to learn that some recent discussions could have a very tangible impact on fraud trends down the road.
Senator Chris Dodd is pushing legislation in the CARD ACT to change when application information can be posted into a consumer's credit file. His argument is based on his belief that the policies of credit card issuers to post information on application attempts, instead of account activations, causes card issuers to change the consumers risk exposure thus producing higher fees and rates charged to the consumer. Dodd stated, "Too many families are starting to rely upon short-term, high-interest credit card financing to meet basic needs".
The most critical aspect of his plan is that the bill would prohibit providing information about newly opened accounts before they are activated by customers. If this policy were implemented it could create an increase in credit card fraud applications. For example, a fraudster could open 10 credit card accounts, but waits to activate them until they receive all of the cards. The second through the tenth issuer would have no idea the fraudster had already opened the other accounts when they processed these applications. This could lead to significant increases in Identity Theft per case losses.
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INTRODUCTION TO COMMON COMPLIANCE AND KYC REQUIREMENTS FOR US ECOMMERCE.
Covers the basic regulatory programs related to compliance within the USA indicating the core requirements and who is required to comply. This session covers topics such as KYC, SOX, PCI, OFAC, AML, SARS, Privacy notices, FRCA, Breach Notification, Export and Denied Party lists.
increased legislation causing waves in the online landscape.
The United States and European Union continue to draft new legislations affecting eCommerce.
Introduction to Ecommerce Fraud Fundamentals.
Provides participants foundation level knowledge about the theories, best practices and terminology surrounding electronic payment fraud. Presented in a standard format covering the history of eCommerce Fraud, consumer fraud, merchant fraud, fraudster motivation, fraud trends, identity verification and phishing.