FraudShare: A Neighborhood Watch For The Financial Community
Better Identity Authentication Needed
The report, sponsored by the SOA Research Institute and the Secure Retirement Institute and titled “Keeping Retirement Plans Secure in an Insecure World,” called for greater measures in identity authentication and inserting real people into the distribution process as an additional control.
“Some record keepers are most concerned with new forms of financial services malware or ransomware,” the report said. “A record keeper can be doing all the right things to protect participant assets, but all it takes is one successful attack to cause great harm. This could happen at either the record keeper or plan sponsor level.”
Anderson said his panel discussion will also review the work of researchers at the FINRA Foundation and Rush University Medical Center, which studied the role of aging and cognition on financial and health decision-making and scam susceptibility.
“The scammers stepped up their attacks on individual consumers,” he said. “A lot of email compromised schemes, a lot of romance scams, and a lot of schemes targeted the elderly during the height of the pandemic when they were more likely to be isolated, alone and more susceptible. They were able to obtain a significant amount of personal data, which they used to commit the account takeover type frauds.”
'FraudShare' Tool To Be Reviewed
The panel will also use its time to review a fraud-fighting tool developed by LIMRA called “FraudShare,” which has been successful in providing early-warning signs of potential suspect activity allowing users to proactively research and stop a potential account takeover.
“The FraudShare application is really a consortium database,” Anderson said. “As companies encounter account takeover fraud instances, they report that data to FraudShare, so everyone has the scammers phone numbers, bank accounts, email addresses, and IP addresses they use. We find fraudsters reuse this data. So by sharing this data, companies are able to alert each other when there's a fraudster working the neighborhood. We like to say it is a neighborhood watch for the financial community.”
Doug Bailey is a journalist and freelance writer who lives outside of Boston. He can be reached at [email protected].
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