JAN - FEB, 2023ENTERPRISE SECURITY| | 19SAFEGUARDING AGAINST PAYMENT FRAUDTHROUGH STRATEGIC PERSPECTIVESBy Eric Bonnell, SVP, Risk Management, Atlantic Union BankMilitary strategy is built from different perspectives: the natural formation of the battlefield, the skills of the soldiers, the intelligence available about the enemy, etc. The tactics used in battle are also based upon this perspective and need to be rehearsed and adjusted as more information is available and the conditions change.In a similar way, understanding payment fraud from different perspectives is the key to building a mature strategy and executing tactical controls. The objective is to delay questionable transactions from going through before they can be verified and processed safely or rejected. Considering the perspectives below is key to building a layered strategy and tactical procedures to address payment fraud at your organization.PERSPECTIVE: HOW THE GAME IS PLAYED ­ POLICIES, STANDARDS, AND PROCEDURESSet clear and reasonable expectations within your policy and procedures, including customer identification and authentication rules, tiered transaction limits, transaction review criteria, and a strict approval structure. With these rules in place, design the controls for the remaining protection layers. Regularly review the policies, standards, and procedures in line with the organization's fraud trending report, business model strategy, and the current fraud risk assessment to address improvements and updates for new payment types and scenarios.PERSPECTIVE: THE WILD CARD ­ YOUR CUSTOMERA compromise could and often does start with the customer and the customer's technology. While the customer is directly out of your control, you should provide awareness and training to guide the customer in making safer choices.Awareness topics include being vigilant against cyber compromise and social engineering as well as maintaining end-user and browser security. Also, having regular reminders and strong multifactor authentication in place will assist the customer and bring security top of mind when making transactions.PERSPECTIVE: KNOCKING ON THE FRONT DOOR ­ KNOW YOUR CUSTOMER (KYC)Besides being a regulatory requirement, knowing your customer and your customer's behavior can assist in validating the authenticity of payment transaction requests. "Good tactics can save even the worst strategy. Bad tactics will destroy even the best strategy." - General George S. Patton Jr.Eric BonnellCXO INSIGHTS
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