Account Takeover: Myth or Reality?
Rayleen Pirnie, EPCOR
& Steve Helgen, US Bank & Mark Hargrave, Stinson Morrison Hecker LLP
Panelists address the growing problem of account takeover including new methods criminals are employing to steal funds from accounts — recent, devastating and costly fraud developments faced by businesses and financial institutions. This session begins with a review of the landscape of account takeovers, highlighting legal and business implications from recent litigation. Next, attendees hear startling realities of the ease with which network and account intrusion occurs, and how these scams are morphing. Panelists share case studies demonstrating how effective new twists to this fraud are and the need for increased cooperation among institutions when a fraud is detected. Panelists also discuss steps businesses and institutions are taking to mitigate risks of a takeover, as well as industry best practices. Leave with practical steps to reduce your risk profile.
2:15 - 2:30 am
Break
2:30 - 4:30 pm
Fraud Panel
Panel Moderated by: John McCullough, FRPA
Speakers include: Chris Abbas, Minneapolis Police Department & Iris Freeman,
Center for Elder Justice and Policy at William Mitchell College of Law & Rachel Williams, US Postal Inspection Service & Deb Siebenaler, MN Department of Human Services
Three key topics will be covered during this session, including a discussion centering on the growth (both locally and nationally in financial crimes against the elderly. Presenters will also provide an overview of financial crimes statistics, signs of exploitation faced by the elderly, and emerging practices in combating these tragic problems. Chris Abbas, Minneapolis Police Department, will share some highlights of “hot” financial crimes cases (including payments with ACH payments implications). A panel discussion will follow these three topics for questions and answers. This panel will also include Rachel Williams of the US Postal Inspection Service.
7:30 - 8:30 pm
Dessert Reception sponsored by the Federal Reserve Bank.
Full Conference
Wednesday, October 12, 2011
7:30 - 8:30 pm
Dessert Reception sponsored by the Federal Reserve Bank.
Thursday, October 13, 2011
7:00 - 8:15 am
Registration and Breakfast
7:00 - 8:00 am
AAP Breakfast - by invitation only
8:15 - 8:30 am
Welcome and Opening Remarks
8:30 - 9:30 am
General Session
Changing Realities – Changing Leadership
Claudia Swendseid, Federal Reserve Bank of Minneapolis
The public has been bombarded the past few years with news of the banking industry. Some of it has been factual. Some of it has been sensationalized. All of it has been consumed and digested.
The conference opening keynote address will showcase the true payments and demand trends in our industry; the issues we should be paying attention to. Given these trends, and the public's image of our banking industry today, what leadership characteristics should we bring to bear to seize the day? Adaptability? High ethical standards? What attributes are essential if we are to lead in the banking industry today?
9:30 - 9:45 am
Break
9:45 - 10:45 am
Concurrent Sessions
The Challenging World of Exceptions in an Image Environment
Angie Smith, Viewpointe
As we have moved from processing checks in a paper to image environment, adjustments have become quite different. This session will provide a comprehensive review of check adjustments surrounding imaged items. Learn the proper steps, codes and timeframes for the timely reporting of the most common image check adjustment error codes. If duplicate presentments is your headache, this session is for you.
The New Mobile WEB Rule: Why the WEB Entry Isn't the Entry You Think It Is
Joe Casali, AAP, NEACH
Since its introduction 2001, the WEB entry has traveled a different road. In January 2011, the new Mobile Rule became effective. In April, 2011 NACHA presented results from an ODFI WEB Payments Survey that produced some interesting results. In this session, we will review the requirements of the WEB entry, the new changes introducing Mobile and delve into what the research tells us is really going on with ACH Internet Initiated payments.
Payment Changes Through the Decade Claudia Swendseid, Federal Reserve Bank of Minneapolis
In 2001, the Federal Reserve Banks conducted the first payments study to directly estimate the volume and value of checks and other retail payments. As the country’s central bank, the Fed continues this practice today to help estimate the size of the U.S. retail payments system.
This session will present highlights of the 2010 study, the fourth in the series of triennial studies and present a snapshot in time of the usage of noncash payments options. Learn how the movement from incremental shifts in electronic payment usage early in the decade to accelerated acceptance in recent years has led us to nearly 80% of total noncash transactions being electronic. What surprises did the study uncover? What action should the industry take as a result?
EDUCATION TRACK: ACH Fundamentals
Christy Stock, AAP, InterceptEFT & Dana Moeller, AAP, UMACHA
Join us at this session to get acquainted with ACH! Designed for the person who is very new to ACH, this session will provide basic information – from the beginning – what ACH is, the history and legal framework, plus the participants that make up the ACH network. Attend this session and see diagrams of how ACH transactions flow among the basic participants in the network. Included will be details on some common ACH products affecting consumers every day (from the customer/consumer point-of-view). This is a “must-attend” if you are new to ACH!
10:45 - 11:00 am
Break
11:00 am - 12:00 pm
Concurrent Sessions
Emerging Behaviors of Social Media
Mark Walinske, CFC Technology
EBIDS: The ACH Shortcut to Bill Presentment and Payment
Tim Mills, AAP, The Clearing House
At the conclusion of this session, attendees will understand the justification for NACHA’s sponsorship of EBIDS as a presentment solution for the industry, the benefit that EBIDS provides to financial institutions of all sizes and the challenges associated with moving such an initiative from concept to commercialization.
In-Band or Out-of-Band? All You Need to Know About Combating Man-in-the-Middle Style Attacks
David Nayes & Andrew Showstead, Vasco
Conventional in-band and out-of-band authentication mechanisms have long since outlasted their effectiveness in protecting against current e-banking threats such as real-time Man-in-the-Middle (MITM) and Man-in-the-Browser (MITB) style attacks. Implemented in-band or out-of-band, conventional authentication tools increasingly fall short when protecting the integrity of financial transactions. This presentation will review the conventional strong authentication tools and delivery mechanisms such as one-time passwords, out-of-band authentication, phone-based authentication, software and mobile authentication. Subsequently, we will discuss where each tool could be sufficient or, on the contrary, could fall short. At the end of the session, our experts will offer their recommendations for best practices in securing e-banking transactions and protecting your customers from MITM attacks. We will cover topics such as: MITM and MITB delivery mechanisms and risks, out-of-band authentication: myth vs fact, out-of-band transaction validation and best practices in transaction security: a layered approach.
EDUCATION TRACK: ACH Stop Payments & Exceptions
Donna Olheiser, AAP, UMACHA
Proper handling of stop payments and ACH exceptions is critical so you can limit your financial institution’s liability and potential losses. Attend this session to hear the stop payment rules and guidelines to handle other exceptions that financial institutions experience every day. We will use examples and case studies to apply the information provided in this session to real-life examples. This is NOT a basic session, working knowledge of ACH is recommended.
CAUTION: Acronyms will be used frequently!
12:00 - 1:00 pm
Lunch
1:00 - 2:00 pm
Concurrent Sessions
The World of Mobile – Our Planet on the Go
Debbie Smart, AptysSolutions
Mobile devices are fast becoming a consolidator (and replacement) of many different things: mobile computers for internet access, personal calendars and schedulers, calculators, cameras, handheld games, portable media players, MFA tokens, debit cards, credit cards, marketing coupons, pagers, personal navigation devices – the list goes on and on. As smart phone penetration surpasses standard feature phones, more demands will be placed on both companies and financial institutions to provide on-demand and up-to-the-minute services, information, and payments capabilities. What should companies and financial institutions be thinking about as they look out on the mobile horizon? And how can mobile devices be protected against fraud? Hear thought provoking ideas and practical applications you should be considering for you company and your customers. The discussion will include mobile banking, C2B and B2B payments, advertising and couponing, ticketing and servicing.
What’s New and What You Need to Know About ACH Today Wendy Wishon, AAP, EPCOR
This session will take a look at the current ACH Network environment, discussing 2011 Rules changes, potential 2012 Rules changes and NACHA initiatives. Find out what you need to know about what’s going on in the ACH Network today.
Hot Legislative and Legal Issuesin the Payments Space
Dick Fraher, Federal Reserve Bank
The past year has seen significant upheaval in payments related law and regulation, but less upheaval than some people were promoting. The Dodd Frank Act brought us the new CFPB, regulation of interchange fees for debit cards, and a new set of rules for “remittances”--consumer originated electronic payments going to foreign destinations. Just as interesting is what has NOT happened in payments law. The nay votes continue to be louder than the yea votes in the ongoing debate about whether the country needs to update the Uniform Commercial Code to catch up with electronic payments and to deal with issues that came up in the “mortgage mess.” Hear an expert in this space talk about these, and other key changes in the legal framework and how they will affect us in the future.
EDUCATION TRACK: Navigating Paper and Electronic Payments - Start with the Right Roadmap
Ellen Heffner, ECCHO & Angi Farren, AAP, UMACHA
You wouldn’t put the car in gear and start your driving vacation without the proper planning or a roadmap to show you how to effectively reach your destination. The same might be said for navigating the payments process. Whether the payment starts as a piece of paper or as an electronic transaction, having a “roadmap” to the system of regulations and rules that provide the framework for exchange is very important. Join this session and learn about the similarities and key differences between various types of payments and how the proposed changes to the regulations governing check payments, and the changes to check and ACH rules, may impact the twists and turns in the road ahead.
2:00 - 2:30 pm
Break
2:30 - 3:30 pm
Concurrent Sessions
Creating Customer Value with Funds Transfer
Ken Isaacson, Federal Reserve Bank of New York
On November 21, 2011, the Federal Reserve Banks will implement new service offerings to support extended character business remittance information, payment notification and tracking and better alignment to SWIFT. These offerings will impact financial institutions and their commercial customers.
This session will focus on industry changes and include discussion of the impacts and opportunities the new service offerings will provide to you and your corporate customers. Learn about the format changes and resulting business opportunities, such as the ability to offer services to your customers to improve straight through processing rates and to track payments traveling through the payment chain. Learn what the Federal Reserve, service providers and financial institutions are doing to prepare, how new funds transfer format changes enable enhanced remittance information and payments tracking and how financial institutions of all sizes can leverage the changes to provide new or improved services to their customers.
Proposed Changes to Reg. CC and Its Impact on Financial Institutions
Mary Gilmeister, AAP, WACHA
Earlier this year the Fed published their long awaited re-write of Regulation CC. The image world has changed much in the check processing area and this is the Fed’s reaction to all the changes. Areas impacted include availability, exception entry processing, holds, and ECI’s (Electronically Created Items) among others. Come to this session and find out how the changes proposed would change the way all financial institutions view and handle image and paper items.
Innovation vs. Regulation
Deborah Matthews, AAP, Jack Henry & Laurie Applebaum, AAP, Viewpointe
It’s the old chicken and egg paradox…which comes first, innovation or regulation? Join us for this fast paced point-versus-counterpoint session, where two payments experts face off to inform and entertain attendees.
Today’s payments landscape is marked by constant news stories about new technological advances and creative concepts for new transaction types and emerging payments channels…but how does one distinguish the real signals from the static? What role should regulation play in keeping these innovative payment mechanisms safe, secure and viable options in the marketplace without impeding progress?
At the same time, institutions face growing regulatory scrutiny and pressure to implement new legislative mandates. Is it possible that these challenges are the catalyst for innovative ways to capture market share, replace lost fee revenue to increase profitability and to improve customer satisfaction?
This presentation highlights thought-provoking, current examples of regulation vs. innovation that will resonate with all financial institutions and will conclude with an interactive session designed to spark lively conversation and debate.
EDUCATION TRACK: Government Exception Processing, Reclamations and Garnishments
Donna Olheiser, AAP, UMACHA
Processing received Government ACH payments involve other regulations found in the Code of Federal Regulations (31 CFR Part 210) – which is conveyed in a Financial Institutions Guide known as “The Green Book”. This session will cover details and procedures to follow when you encounter the “exceptions” that cause confusion in your day-to-day ACH processing; such as misdirected payments, tax refunds and government reclamations. Examples and case studies will help participants reinforce learning. The session will also include an overview of Garnishments and take-away examples of what, when and how regarding issues surrounding garnishments and Federal Government Payments.
3:30 - 3:45 pm
Break
3:45 - 5:00 pm
General Session
PCI Data Security Standard: What is it? And, Does It Apply to YOUR Bank?
Andrew Brooker, CISP, Assurity River Group
The Payment Card Industry Data Security Standard (PCI DSS) is an information security standard for organizations that store, process or transmit card information for the major debit, credit, prepaid, ATM and POS cards. The major card brands (VISA, Mastercard, American Express, Discover and JCP) created the PCI Security Standards Council to encourage and enhance cardholder data security and facilitate the broad adoption of consistent data security measures globally. All members of the payment card industry – including financial institutions, merchants and service providers – that handle payment card data, in every channel must be in compliance with the PCI DSS. Failure to meet compliance standards can result in fines from credit card brands and even the loss of privilege to process payment cards.
5:00 - 6:00 pm
Reception
Friday, October 14, 2011
7:45 - 8:30 am
Registration and Breakfast with Table Topics
8:30 - 9:30 am
General Session
Replacing Lost Fee Income: Best New Revenue & Cost-Cutting Opportunities in 2011 and Beyond
Lee Wetherington, ProfitStars, a Jack Henry Company
Dodd-Frank, Reg E, Reg Q and other impending regulations threaten community bank profitability with potential costs of nearly $12B in fee revenues industry-wide. Consequently, financial institutions must re-assess their business models, revenue streams and cost-cutting. So, what to do? Should your financial institution change its product/services mix or change the way in which it sells existing products and services? Or both? Which products and services will generate fee income in the face of reg-driven fee compression? What is growing, how has customer psychology changed post-recession, and where are the best opportunities? Reloadable open-loop pre-paid cards? Expedited bill payments/ online financial management (OFM) for consumers and businesses? Mobile services and payments? Join us for the answers.
9:30 - 9:40 am
Break
9:40 - 10:10 am
Product Showcases
Centrix
ACH Risk Management...It Doesn't Have to be Complicated
Centrix helps financial institutions identify payments fraud with robust technology to monitor both originated and received ACH payments. This session will review our file validation process that detects suspect origination activity, allows the FI to easily review these exceptions, and simplifies risk assessments and the ACH risk reporting that is required by regulators and NACHA. For RDFIs, the Centrix platform offers fraud detection in the form of both check and ACH positive pay (filters/blocks), while also automating the back office and enhancing customer service with EDI translation and ACH returns reporting.
Fundtech
Fundtech's Payment Solutions
Fundtech is a leading provider of transaction banking solutions in the United States to Banks and Credit Unions. Fundtech has over 1000 financial institution clients. Come visit with Fundtech and learn about Fundtech's ACH Processing and Origination Platform, ACHplus and Fundtech's Automated Wire Solution, PAYplus USA. Fundtech enjoys the leading position in automated payment solutions in the US Financial Institution market. Our vision: 'A world of untouched paperless payments.' Our Mission: 'To be the dominant technology provider in Transaction Banking to both financial institutions and corporate treasuries with the reputation for high-quality and innovative solutions that provide a competitive edge to our customers..
Guardian Analytics
Anomaly Detection and the FFIEC Supplement to Internet Banking Security Guidance
This presentation will summarize the recently released FFIEC Supplement to Authentication in an Internet Banking Environment, breaking down what is new and what regulatory Agencies will be expecting starting January 2012. Particular attention will be paid to the Agencies’ requirement for layered security and the ability to detect suspicious behavior and anomalous transactions (aka "anomaly detection"). The speaker will describe what anomaly detection is and how it detects fraud, discuss practical implementation considerations, and share some real-world use cases of institutions using anomaly detection today to protect their customers from online and mobile banking fraud.
Federal Reserve Bank
FedTransaction AnalyzeSM and FedACH Risk® RDFI Alert Services
The Federal Reserve's newest tools help you manage payments risk and compliance.
Learn how the FedTransaction Analyzer service enables you to automate and standardize after-the-fact analysis of payment transactions. Service features include:seamless access to payments data, increased efficiency and simplified processes and the ability to easily identify higher potential risk areas
The service is available as part of the standard FedLine Advantage® Plus package.
New functionality has been added to the FedACH Risk RDFI Alert Service. Now, in addition to setting up notification criteria at the incoming file level you can use eight different ACH batch fields to customize notification criteria at the batch and item levels.
Customize criteria to notify you on just the things most important to your organization
Identify batches containing unusually large numbers of transactions and addenda
Set up alerts to incoming batches from originators on fraud watch lists
Prepare for situations that could impact your institution's reserve account
We’ll also discuss risk management services available for originators.
ACH Alert
Stop Account Takeover in ACH & WIRE with C.O.P.S.
Wouldn’t it be nice for the fraudster to be waiting for the money they thought they misdirected, that will never come? C.O.P.S. (Credit Origination Protection Service) can render a corporate account takeover attempt useless. Come see how other financial institutions are launching an effective counter-attack, without requiring their Originators to jump through another authentication hoop each time they want to initiate a wire transfer request or originate ACH credits in online banking.
10:10 - 10:30 am
Break
10:30 - 11:45 am
Concurrent Sessions
Social Banking? Social Media for Banks & How to Do It Right
Lee Wetherington, ProfitStars, a Jack Henry Company
84% of online consumers are active on social networks, but only 11% are connected with their financial institutions on social networks. 36% are interested in connecting. What started as a venue for Gen Y’ers has quickly become a cross-generational meeting place. Online consumers ages 50-64 are the fastest growing segment. Learn why social media matters, the top 5 ways financial institutions use social media now, the top 5 mistakes financial institutionss make in doing so, the risks (compliance and security) and how to mitigate them, and the necessary elements of a social media policy. Even if your financial institutions isn’t planning a presence on social networks, two questions must be addressed: (1) do you want to be privy to conversations (both good and bad) about your financial institutions that's already happening online in social networks, and (2) do you want to be a party to those conversations? Join Lee for the answers.
ACH? EIPP? STP820? OMG! – How to Sift Through the Jargon to Develop a Cohesive
e-Payment Strategy
Greg Rettinger, AAP & Jeff Pape, U.S. Bank
Making the decision to shift away from paper checks is difficult, and you face an alphabet soup of electronic alternatives from which to pick. This session will help you determine the optimal blend of payment options to meet your needs, and ideas on how to drive adoption levels higher.
Managing ACH Risk Coming & Going
Patrick Collins, Associated Bank & Kim Bruck, AAP, ACH Alert
Handling unauthorized ACH debit disputes for incoming ACH items, managing risk of ACH debit origination and combating the new threat of account takeover and the potential impact to credit origination is a daunting task for financial institutions. The risk factors are unique for each and require a combination of best practice methodologies and technology to stay a step ahead of the fraudsters. The speakers will share their insight, experience and “HOW” they are managing the exposure unique to each environment.
EDUCATION TRACK: Prepaid Cards 101 Trinity Surat and Nichol Beckstrand, Sunrise Community Bank
This introductory session through the Prepaid industry will provide a basic understanding, how it works, roles & responsibilities, and key elements needed from card associations involved to revolutionize this fast-growing industry. The payments industry has evolved from traditional banking and adopted this trending Prepaid concept. Today’s discussions will focus on the different products, the role of the FI, Regulatory Compliance, and volume trends.
11:45 am - 12:45 pm
Lunch
12:45 - 1:45 pm
Concurrent Sessions
What is Social Media and Why Do I Care?
Dawn Richardson, AAP, U.S. Bank & Kali Richardson
Facebook, Google+, Twitter, LinkedIn...They're all having a tremendous impact on our society and the way we do business. But different generations see those tools differently. Hear from a genX mother and her millennial daughter as they talk about how each of them views social media and where they think it will take us.
Move from Paper to Electronic in the C-Store Environment
David Wagner, Tammy Franzini and Angela Newman, Kwik Trip, Inc.
Kwik Trip chose to electronify their payments to help reduce costs and fraud risk and to improve compliance with their regulators. In this session you will find out why they have their own private label card program, what benefits and cost savings they gained with their Back Office Conversion (BOC) program, and how they modified their procedures to reduce fraud.
Fraud Issues and Opportunities?
Vicki Collander & Mike Johnson, Bremer Bank
Discuss the current state of fraud threats facing financial institutions both cyber and traditional. With all the risk and threats facing financial services organizations, what is the best approach to understanding the risks and incorporating lessons learned into your ongoing fraud prevention program.
EDUCATION TRACK: So you want to be an AAP?
Brenda Eckert, AAP & Megan Henning, AAP, Wells Fargo Bank
The Accredited ACH Professional (AAP) Designation was first introduced in 1993. Since the inception of the program, more than 4000 ACH professionals have taken on the challenge and successfully obtained their AAP designation.
This designation recognizes individuals as highly-skilled professionals with expertise in electronic payments. The exam covers a variety of topics including general payments, products, risk management, operational process flow, technical standards, and rules & regulations. During this session, the presenters will walk through best practices for preparing for the exam and provide an open forum for questions.
1:45 - 2:00 pm
Break
2:00 - 3:00 pm
Closing General Session
Beyond the Huddle
Dave Mona, Weber Shandwick
Enjoy a lively conversation with Dave as he relives a lifetime of personal vignettes about Minnesota, sports and community. Dave will share lessons learned from some of the region's most interesting characters including legendary WCCO News broadcaster Dave Moore, Twins and Yankees manager Billy Martin, Star Tribune columnist and WCCO broadcaster Sid Harman and Minnesota Gophers football headcoach Jerry Kill, among many other noteworthy personalities.