"Durbin, as it stands today, is very poor for the payments industry and the consumer, because it would lend itself to reducing fraud prevention and detection," says one banking/security leader about the controversial Durbin Amendment to Dodd-Frank banking reform.
Breaches will not slow anytime soon, and there's not much financial institutions and the payments chain can do to stop them. At this point, the best course of action for banks and retailers is to focus on damage control.
When a database breach occurs, consumer notification continues to be a public problem. And it's time for the federal government to step in, says Linda Foley, co-founder of the non-profit Identity Theft Resource Center.
"I think this is another great example of the lengths to which criminals will go to perpetrate these schemes, and the amount of homework they do," says Julie McNelley, banking and payments fraud analyst at Aite Group.
"I'd like to make sure our recommendations fit with what the FFIEC is recommending, to continue to help us mitigate risk," says Michael J. Wyffels, SVP and CTO of QCR Holdings Inc. "But the hackers seem to continue to find new ways to exploit vulnerabilities."
A new federal suit against Michaels claims the crafts retailer, hit by a POS skimming scheme in May, took too long to notify customers after it learned of the breach that affected stores in 20 U.S. states.
Strong authentication, using both fact-based and behavioral-based fraud detection solutions, should be part of every financial institution's layered security approach, says Reed Taussig, CEO of ThreatMetrix.
The legislation sponsored by Senate Judiciary Chairman Patrick Leahy would nationalize data breach notification and stiffen penalties for those who fail to notify law enforcement and individuals of a data breach.
David Navetta, an attorney who specializes in IT security and privacy, says the magistrate's recommendation, if accepted by the judge, could set an interesting legal precedent about the security banks are expected to provide for commercial customers.
The Federal Deposit Insurance Corp. has fallen victim to another phishing attack, according to an e-mail alert sent out to customers. This newest attack entices consumers to click a link for details about "important information from your financial institution."
For nearly two years, banks and businesses across the U.S. have been plagued by a wave of corporate account takeover. And while there's no one answer, Texas bank examiner Phillip Hinkle sees ways that institutions can better detect and prevent these crimes.
What's the top threat on the minds of global IT leaders? Employee-owned mobile devices - or BYOD (bring your own device), as the trend is known. The struggle: Do mobile device benefits outweigh the organizational risks?