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Prior to the U.S. Veterans Day holiday, Winston Mittens, a retired Army staff sergeant, answered a call from someone who said he worked at Mittens’ bank. The caller said the bank was beefing up its security, so it needed Winston to verify his account information and Social Security number, which he did. But in the next week, Winston visited his bank to deposit a check and found he had a zero balance in his account. A bank official told Winston that someone had used his identity to steal his banking credentials and drain his money. Lucky for him, the bank covered the fraud and restored his balance. The bank also changed his account credentials so he hopefully wouldn’t be a victim again.
What are the telltale signs of an improper payment? Here we explore the leading research into what can be measured and observed to find common patterns and profiles around improper, and sometimes corrupt, payments.
Recent anticorruption research shows that when companies collaborate to share information about third-party payments and high-risk transactions, they have a 25% greater chance of predicting improper payments than when each company’s model is performed in isolation. A new data-sharing consortium led by a nonprofit at MIT is working to make such collaboration possible.
When inflation skyrockets, central banks increase interest rates to slow spending. Here, the author details why periods of high inflation might lead to high rates of fraud in the lending industry and what lenders can do about it.
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Watch Rachel Wilson, head of cybersecurity at Morgan Stanley, discuss cybercriminal syndicates and how they use malware to infiltrate mobile device security at the 33rd Annual ACFE Global Fraud Conference in Nashville, Tennessee. View the video.