Fraud Management & Cybercrime , Mobile Payments Fraud , Video

Moving From Reimbursement to Tighter Controls on APP

Banking Fraud Expert on How Regulators Are Handing Authorized Push Payment Scams
Ken Palla, retired director, MUGF Union Bank

Consumer groups continue to fight for banks to reimburse victims of authorized push payment scams, but regulators in some countries including the United Kingdom and Australia are looking for ways to tighten controls, said Ken Palla, fraud expert and retired director at MUFG Union Bank.

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"Around the world, regulators are putting more focus on controls rather than reimbursement. The point is: If I can stop the scam, there's no money lost, so let's put controls in place. We're seeing that in the U.K. We're seeing it in Australia. We're seeing it in Singapore. That becomes quite important," said Palla.

He emphasized the need to have a money mule management program, focusing on online account opening and inbound and outbound transactions. "One of the main reasons that these scams continue to work is because we have a plethora of money mules in every country. And so the banks have to own that."

In this video interview with Information Security Media Group, Palla discussed:

  • Australia's three-pronged approach to curbing scams;
  • The U.K.'s reimbursement framework:
  • Singapore's unique anti-phishing program.

Palla helped shape the initial responses to the U.S. 2005 and 2011 FFIEC Regulatory Guidance to improve online security for U.S. banks and served as an adviser to the RSA Conference eFraud Global Forum. He currently serves as a member of the program committee for the annual RSA Conference in San Francisco.

About the Author

Suparna Goswami

Suparna Goswami

Associate Editor, ISMG

Goswami has more than 10 years of experience in the field of journalism. She has covered a variety of beats including global macro economy, fintech, startups and other business trends. Before joining ISMG, she contributed for Forbes Asia, where she wrote about the Indian startup ecosystem. She has also worked with UK-based International Finance Magazine and leading Indian newspapers, such as DNA and Times of India.

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