Fraud protection with PINless debit on the rise

first_imgMost processors’ fraud monitoring services allow credit unions to customize their velocity parameters by transaction type. Given the increased risk of approving a transaction without a PIN, credit unions should consider tweaking their velocity parameters to ensure that they are quickly notified when cards are repeatedly used at the same location without a PIN. Credit unions can expect an increasing number of PINless debit transactions coming their way, resulting in reduced interchange fee revenue and presenting some important challenges regarding member incentives.PINless debit transactions at the POS have been around for a while, but only started to gain traction this year. PINless debit occurs when a retail purchase amount is under $50.00 (perhaps 70% of PIN debit transactions qualify). When a cardholder presents her debit card at checkout, even if she chooses “credit”, the merchant may elect to route the transaction over the PIN debit networks without the PIN being entered. Since merchants pay higher interchange rates for signature transactions than PIN transactions, the merchant views PINless debit as a lower cost option compared to traditional signature debit.We can expect this practice to increase. As merchants complete their EMV conversions later this year, many will turn their attention to PINless. There are a number of ways that this will impact the credit union community.In the absence of a PIN we can reasonably expect that PINless transactions are more susceptible to fraud. In recent months there have been several cases where credit unions reported a surge in counterfeit activity specifically targeting PINless transactions. Individual cards were used 8-15 times before the fraudulent activity was detected. The source of the data for creating the counterfeit cards was reported to be previously undisclosed merchant breaches.How, then, can credit unions better protect themselves?A number of the credit unions impacted had not signed up for their processor’s fraud monitoring service. You should check with your EFT processor to ensure that fraud monitoring is turned on and that it is specifically looking at PINless activity. Due to the costs involved, some credit unions are reluctant to reissue cards involved in a breach when there are no signs of fraudulent activity. Compromised card data is often stored for long periods before being sold and used by the fraudsters. Credit unions should consider reissuing cards as soon as they become aware of a compromise. EMV chip cards were specifically designed to eliminate the types of counterfeit transactions we are seeing with PINless. Credit unions should consider the protections provided by chip cards in their EMV migration plans. While focus has largely been on credit cards, a re-evaluation of plans for debit may be in order.The credit unions we have worked with through this recent fraud outbreak in PINless have seen major reductions in fraud losses.There are other implications as well. Many credit unions offer reward programs with their signature debit cards. They encourage members to select “credit” at the POS to maximize the credit union’s interchange income. Reward points are often the incentive, and some of the credit union’s interchange revenue is applied to the cost of the rewards program. But what happens when merchants exercise their Durbin rights and route the transaction as PINless debit?   Your member may have selected “credit”, but the transaction is routed as PINless debit and the cardholder does not receive her reward points. The result is not only a loss of interchange revenue for the credit union, but also member dissatisfaction when she no longer receives the expected reward points. Given these possibilities, credit unions may want to reexamine their rewards programs to see what still makes sense under the new paradigm. Further exacerbating the situation, many credit unions impose a PIN debit fee to encourage signature use. For credit union members, however, they not only lose their rewards points, but also now have to pay for transactions they previously received for free.As merchants transition more transactions to PINless, credit unions will want to take steps to mitigate the increased risk, re-examine how the new transaction mix impacts their members’ cost of doing business with their credit union, and how it may affect credit union revenue streams.center_img Some credit unions had originally signed up for their processor’s fraud monitoring service, but later added other networks. Many processors require specific implementations of the fraud service for each network. Check with your processor to make sure all of your networks are covered. 61SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Christopher Poole Christopher Poole Joined CU24 in 2014. Mr. Poole is responsible for providing network technical support and guidance, managing implementation of network interfaces, ensuring processors are in compliance with Network Operating … Web: www.cu24.com Detailslast_img read more

British expert says preliminary inquiries should end in Eastern Caribbean

first_img Share Tweet Sharing is caring! NewsRegional British expert says preliminary inquiries should end in Eastern Caribbean by: – September 17, 2011 Sharecenter_img Map of the Eastern Caribbean. Photo credit: caribbean-on-line.comKINGSTOWN, St Vincent — A British legal expert helping with the revamping of the criminal justice system in the Eastern Caribbean believes that preliminary inquiries should be abolished.A preliminary inquiry determines if the state has enough evidence to justify a trial. It is intended to safeguard against putting people in jeopardy of being convicted in a trial without the state having sufficient evidence to prove the case.If, after hearing the evidence, the magistrate is satisfied that there is enough evidence that the person could be convicted, then the person is committed to trial at a higher court.Witnesses often testify twice: during the preliminary inquiry and also at the trial.“Why call witnesses twice? We can call witnesses just once at the trial and then their evidence can be tested,” criminal justice advisor to the Eastern Caribbean in the British High Commission Daniel Suter said, referring to preliminary inquiries.On Wednesday, Suter discussed on local radio the Prosecutors’ Code recently launched in St Vincent and the Grenadines.Suter spoke of the deficiencies in the local court system, saying that delays, often caused by procedures and the manner in which matters are investigated, were one of the main concerns.“What I am looking at is to make investigators work more closely with prosecutors at an early stage. … What I can see as a good way ahead is abolishing preliminary inquiries. I don’t think that they are systems that allow for justice in as much,” Suter said.He added that preliminary inquiries also delay trials and accused persons should be tried “at the earliest stage” since this relates to human rights.“It is [also] not fair for witnesses and victims that matters are prolonged for that period of time,” he said.Suter emphasised the role of the Director of Public Prosecution (DPP) in determining who is prosecuted.He objected to the police performing the role of arresting, interviewing, investigating, charging and then prosecuting an individual, as is generally the case in the magistrate’s courts.“My personal view is that that’s unconstitutional and that it should be the DPP who determines the matters that are prosecuted both in the Magistrate’s Court and also the High Court.”He said that with the implementation of a national prosecution service, police prosecutors, would become part of the DPP’s office.In this way, the DPP would be fulfilling his constitutional role of managing prosecutors going through the Magistrate’s Court and “maintaining that objectivity and independence,” Suter said.He said that police prosecutors who do not become members of the national prosecution service could return to investigating or study law.Suter also addressed the issue of prosecutors passing the “evidential stage” and the “public interest test” before going to trial.“Within the code for St Vincent, it says that there must be a reasonable prospect for conviction. So, if all the points to prove for an offence are made out and the prosecutor decides ‘Yes I believe I can get a conviction on the basis of the evidence that is produced to me by the police,’ the evidential stage is passed.”He, however, cautioned that it should not always be the case that even if there is sufficient evidence that a person should be prosecuted.Prosecutors, Suter said, should consider, on a case-by-case basis, the potential long-term negative impact of prosecution on a person’s life.He said if a prosecutor, after such considerations, decides not to move forward with the case, the crime would still be recorded and prosecutors might not be as lenient with repeat offenders.The Prosecutors’ Code speaks to this in that it sets out the parameters in which a prosecutor decides whether to prosecute.“… [T]he public needs to know … what are the rules of engagement that the prosecutor makes the decision by and the public interest test can be one that can cause a lot of debate. And therefore the code sets out a number of examples where the public interest stage can be considered,” Suter explained.“It is a debated point but there is something there to secure justice and the reason for the code is to ensure there is transparency, objectivity in relation to any decision being made, because, of course, they can be critical decisions,” he explained.Suter also suggested that police interrogators tape or video record their interview of suspects, saying that this could help to protect the credibility of the police.He further noted that the changes being proposed to the Eastern Caribbean court system are not “UK-centric”. The UK, he said, can learn much from other systems around the world.by Kenton X. ChanceCaribbean News Now contributor Share 37 Views   no discussionslast_img read more

Not guilty pleas in steroids case

first_imgALBANY, N.Y. – Eleven people connected to a Florida pharmacy at the center of a nationwide investigation into the illegal sale of steroids pleaded not guilty Monday Robert Stanley Loomis and wife Naomi, the owners of Signature Pharmacy in Orlando, Fla., were arrested last Tuesday during a raid in which police confiscated truck loads of drugs and other evidence. Both are registered pharmacists in Florida. Robert Loomis’ brother, pharmacist Kenneth Michael Loomis, and Kirk Calvert, Signature’s marketing director, also were charged. The growing case has linked the online drug network to doctors and health care centers in at least three states. The four are charged with 20 counts each of criminal diversion of prescription medications and prescriptions, criminal sale of a controlled substance and insurance fraud. 160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set!center_img Each posted bail of $30,000. All four shuffled into court, dressed in jail jumpsuits, handcuffed and shackled. “We hope to have them home as soon as we can so they can be with their kids,” said Dawn Tingley, the Florida lawyer representing the Loomises and Calvert. last_img read more