US Bankcard Services Industry Blog

Monday, September 26, 2011

PCI: The Need is Now!

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Attention! All merchants who use credit card processing: As the economy continues on its precarious path there seem to be no improvements in banking fraud protection for SMBs… uh oh… now what? Guardian Analytics and Ponemon Institute have been researching, monitoring and providing industry fraud data reports for years.

It seems that businesses and financial institutions continue to lose money and customers due to a lack of action being taken to prevent corporate account takeover and fraud such as skimming. According to a new study from fraud prevention firm Guardian Analytics and the Ponemon Institute there has been no improvement in the banking industry's ability to stop the unlawful siphoning of money from SMBs with compromised accounts. In the last year, 56% of SMBs reported experiencing payments fraud, or attempted payments fraud, while around 75% reported experiencing account takeover and fraud via online banking channels. Those levels show no improvement on 2010's rates. The study also found that 78% of bank scams involving SMB accounts weren't discovered until after funds were transferred outside of the institution. Furthermore, 70% of SMBs believe it is their bank who is ultimately responsible for the security of their money… but really the merchant in the end is responsible for security.

The result?… A high churn rate… Many businesses choose to move their banking activities after experiencing fraud with about 10% terminating the relationship and 33% who move their primary banking activities. It's a lose-lose situation for banks and businesses - only the criminals are winning. And as online and mobile banking continues to grow, the possibility for more fraud and more lost customers escalates. Endpoint security will be challenged to keep up with the growing number of devices and threats, and banks are in the best position to take the lead on proactively protecting all account holders from the wide variety of threats. This research also reveals SMBs aren't sitting on their laurels when it comes to protecting themselves.

Over three-quarters conduct a monthly account reconciliation exercise, a quarter have a dedicated computer for online banking, 49% use dual controls, 21% use positive pay and 55% of businesses practice daily reviews and approvals of outgoing transactions. A small number (16%) educate their staff in fraud prevention methods. To begin security and fraud prevention practices start with healthy PCI practices.

The above outlines that need for PCI compliance and formalized business and security practices for all merchants especially SMBs who are at higher risk due to lack of proper security measures. At USBSI we have got this down to a science. All of which are part of our business practice and security measures. Please let us share these with you. You work hard for your money; don’t let lax security and criminals take your hard-earned money from you. The below are just some of the security blogs we have published with our merchants’ welfare in mind.

How to minimize fraudulent transactions?
Preventing Hacking, Hijacking, Phishing, SPAM and Fraud: Part 1 - The Basic Practices
Preventing Hacking, Hijacking, Phishing, SPAM and Fraud: 5 safety tips for using a public computer (Part 2 of 4)
A Merchants Guide: Preventing Hacking, Hijacking, Phishing, SPAM and Fraud: Part 3 of 4
Preventing Hacking, Hijacking, Phishing, SPAM and Fraud: Part 4 of 4 : Visa & MC: Rules for Credit Card Transacting

To find out more about your industry and our service, please call us at 888-525-8558 or on the web visit US Bankcard Services, Inc. or drop us and e-mail and follow us on Facebook (Log-in & search ‘US Bankcard Services, Inc.’).