Finance & Banking , Fraud Management & Cybercrime , Industry Specific
CyberEdBoard Insights: Peter Tapling
US Faster Payments Council Leader on Fighting AI-Enabled Authorized Payment Fraud
Traditional fraud detection methods are no longer sufficient against modern scams. Today, fraudsters are tricking many account holders into authorizing fraudulent transactions, said Peter Tapling, board member of the U.S. Faster Payments Council.
See Also: OnDemand | Everything You Can Do to Fight Social Engineering and Phishing
The rise in authorized payment scams stems from the ease with which fraudsters can exploit digital communication or social media channels to build trust and urgency with rich content, he said. Generative AI enhances their ability to produce realistic and personalized messages, emails and even audio or video content, Tapling said.
"It would be easy if when I sent money to the bad guy, it went into the bad guy's account, because then we would wait for him to show up at the branch and do his withdrawal, and we would arrest him, and everything would be good," he said. "But that's not the way it works. All the money is moved digitally. It makes multiple hops. There are multiple mule accounts. Some of those are witting mules. Some of them are not witting mules."
In this video interview with Information Security Media Group at ISMG's North America Midwest Summit, Tapling also discussed:
- The need for behavioral tracking and anomaly detection in identifying fraud;
- Strategies for advanced monitoring to disrupt money laundering networks;
- The importance of safe words in verifying identities.
Tapling has more than 30 years of experience in product development, cloud computing, identity management and computer security. Prior to U.S. Faster Payments Council, he was a technology adviser at Nacha. He is a member of the CyberEdBoard.
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About the Author
Michael Novinson
Managing Editor, Business, ISMG
Novinson is responsible for covering the vendor and technology landscape. Prior to joining ISMG, he spent four and a half years covering all the major cybersecurity vendors at CRN, with a focus on their programs and offerings for IT service providers. He was recognized for his breaking news coverage of the August 2019 coordinated ransomware attack against local governments in Texas as well as for his continued reporting around the SolarWinds hack in late 2020 and early 2021.
