Thursday, May 13, 2010

ACH Fraud: Is Legislation Needed?

Tracy Kitten writes on Bank Info Security:

The Federal Deposit Insurance Corp. (FDIC) gets credit for finally touching the hot-stove debate over ACH fraud that's boiling between banks and businesses. But more attention is needed, say attendees of the agency's one-day symposium on cyber threats.

"No one wants to talk about what's really going on," says Amanda Gross, vice president of government affairs for Chicago-based Authenticity Inc., which provides multifactor authentication for Internet-based transactions.

"Small businesses, the companies that the economy is leaning on to pull us out of the economic recession, are bearing the brunt (of losses related to fraud), and it's not fair," says Goss, who attended the FDIC's May 11 event in Arlington, VA. "What I'd like to see is an open dialogue between the banks and the small business owners. We need to encourage the legislators to put pressure on banks to support and protect our smaller businesses."

George Tubin of Needham, MA-based TowerGroup and Tiffany Riley of Los Altos, CA-based Guardian Analytics agree that deeper discussions between bankers and retailers are needed, and this event only scratched the surface.

More here.


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