WOODCLIFF LAKE, N.J. -- More than 200 financial institution executives attended a special installment of the NYCE Corporation's "Risk Management Forum" series that specifically addressed ATM fraud prevention.
Representatives from domestic and international law enforcement, other payment companies and ATM manufacturers participated in the March 6 meeting in New York City.
A major ATM counterfeit card incident, which occurred late last year in the New York City metropolitan area, was the impetus for the event. Although the fraud did not take place at any NYCE network ATMs, some members of NYCE were affected.
According to Susan Zawodniak, executive director of the NYCE network and vice president at NYCE, the company assisted law enforcement in the investigation, held customer conference calls and served as a point of information coordination and distribution, in addition to hosting the March 6 meeting.
NYCE's efforts were designed to "create an open dialogue designed to help contain any future fraud-related losses," Zawodniak said in a news release.
Speakers at the March 6 event included representatives from financial instituts, the United States Secret Service, HNC Card Alert, a leading ATM manufacturer and an ISO.
Among the "fraud busting" suggestions covered in their presentations:
- Develop a comprehensive action plan for use in the event of a counterfeit card event.
- Make sure you have the capability to block large numbers of cards quickly, should the need arise.
- T ake immediate action on cards reported as "block and reissue" by your fraud detection service provider.
- Prepare for prompt customer outreach (developing letters, phone scripts, etc.) that will precede and/or accompany your block and reissue of cards.
- Review your card production procedures to ensure that your card vendor can expedite the reissue of cards.
- Remind cardholders to report suspicious activity at ATMs to the terminal owner and provide tips about safeguarding PINs.
- Terminal deployers should plan to implement Triple DES and remote key loading upgrades.
