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BankersOnline Security Spotlight

Many banks are starting to install Cash Dispensing Machines (CDM). CDMs should be programmed to allow the operator to dispense a specific amount of cash when approached by a robber.The exact amount to dispense should be decided by management at the time the CDM is installed.
Training WebinarsFFIEC Supplement to Authentication Guidance
November 3
by Paul Carrubba and Dan Fisher

The FFIEC has published a Supplement to the 2005 Guidance entitled "Authentication in an Internet Banking Environment." All financial institutions are expected to comply with this new Guidance beginning in January 2012 when the examiners have been directed to formally assess financial institutions under the enhanced expectation outlined in the Supplement. This webinar will assist your organization in understanding the requirements of the Guidance and will aid your organization in developing an updated security process to implement and comply with the new requirements.

Consumer and Small Business RDC Mobile Capture . . . Deposits on the Move!
November 16
by Paul Carrubba and Dan Fisher

Remote Deposit Capture has become synonymous with 21st century banking, but innovation continues. More financial institutions are expanding Remote Deposit Capture from a treasury management product and offering RDC as part of their overall deposit product strategy. As a financial institution increases its product offering, the risks increase exponentially because of the expansion of the targeted market. The financial institution must consider how offering RDC to consumers and small business will require a different risk assessment process and customer evaluation.

Updating Your Bank's BSA/AML/OFAC Risk Assessment
October 28
by Ken Golliher
Are you looking for an efficient, focused approach to updating your financial institution's risk assessment? Here it is!Banks are expected to continuously reassess the "quantity" of BSA/AML/OFAC risk their institution incurs. This webinar shows participants how to build a structure for updating risk assessments on an ongoing basis. It encourages a continuous flow of information and analysis rather than a periodic immersion.

Security Products
in the Banker Store

Banker Notes - Sticky Note Book

I.D. Checking Guide International Edition (9th Edition)<

Check Fraud: Protecting Your Bank and Its Customers

Welcome to the October issue of Security Spotlight
In this month's Security Spotlight, read about history repeating itself in bank robberies, and some reminders that not all thieves are flagrant outsiders. Barry Thompson shares a safety tip for cash dispensing machines. And CrimeDex alerts are on the rise with some bizarre and interesting cases reported in September.

Quotable Quotes
Misplaced idolism...
Many young people have mentors or idols they look up to who provide a positive influence in their lives.Jesse Hippolite, a 23-year-old New Yorker and avid Yankees fan, might have chosen a better role model than the prolific bank robber, William "Willie" Sutton. Charged with three bank robberies and suspected of 16 others in Brooklyn and Queens, Hippolite was tracked on Facebook by authorities after the wanna-be legendary bandit changed his profile name to "Willie Sutton, Jr" on the social networking site and displayed a profile picture of himself holding a plethora of $100 bills.When asked why he pulled the heists, Hippolite responded with Willie Sutton's infamous line, "That's where the money is."

Third time's a charm...
Most banks are happy to have repeat customers who show their loyalty by returning to do more business.Charles Burnett, from Teaneck, NJ, was a "repeat customer"...but when he visited Sovereign Bank in New York City three days in a row, he wasn't there to make a deposit or take out a traditional loan.Burnett was there to withdraw cash - in an unconventional way. Approaching different tellers on each occasion in a hostile manner, Burnett demanded cash and threatened the tellers with a gun he claimed to have in the bag he carried. As he left the bank after his third consecutive heist, police officers driving by spotted him and recognized him from the two previous robberies, and quickly apprehended him.It was the authorities who got lucky the third time. Burnett is not so lucky considering he is facing three counts of robbery.

Check our Bank Robbery page for photos and information on all the latest robbery suspects.

Internal Theft and Mortgage Fraud

Theft from within - As a bank security officer, you often rely on your colleagues and it can be hard to mistrust some of them. Certainly we hope insider theft is an exception and not something most of you will have to deal with. But security officers need to remain vigilant and must investigate suspicious activity, regardless of who may be involved.At Pinehurst Bank in St. Paul, MN, two former bank officers and a bank customer are facing charges for their alleged involvement in a $1.9 million check kiting scheme which ultimately caused the bank to fail. The bank officers in this case were the bank president and chief credit officer, both involved in a fraudulent scheme that lasted four years."Straw borrowers" were eventually recruited to obtain loans to fund the bank officers' ongoing check kiting scheme until the kiting was discovered and the embezzlement of $160,000 from the bank's 401(k) surfaced, leading back to the bank officers.

With a little help from their friends - In Cuyahoga County, Ohio, 32 defendants are charged for their alleged involvement in purchasing 44 homes with $5.1 million in loans. This criminal enterprise involving buyers, sellers, mortgage brokers, loan officers, title agents and processors, private investors, and appraisers, purchased homes from sheriff sales that were distressed properties. An inflated value would lead to an excessive loan coupled with an open-end line of credit. Title companies were involved as well, charging for rehabilitation work that was never done.

And more theft by abuse of power -The St. Paul Croatian Federal Credit Union is one of the largest credit union failures in our history.The former Chief Operating Officer pleaded guilty to making more than 1,000 fraudulent loans totaling more than $70 million over a ten year period ending in 2010. These unsecured loans were reported as secured and were made to more than 300 borrowers. The COO accepted more than $1 million worth of bribes, kickbacks and gifts for his role in the fraudulently obtain loans, which contributed to the credit union's failure.

FinCEN on mortgage fraud - FinCEN has released its Second Quarter 2011 Analysis of mortgage fraud based on SARs you and other security officers have filed. There were nearly 30,000 SARs filed on mortgage fraud during this period - nearly double the number of SARS filed in the second quarter in 2010. This is not necessarily an indication that mortgage fraud is increasing, but that more incidents are being reported. FinCEN reported that 81 percent of the SARs involving mortgage fraud filed during the second quarter involved suspicious activities that occurred before 2008. And 63 percent involved suspicious activities that occurred four or more years ago. The full 20-page report (PDf) is available here

Alerts & Threads
There is a theft from your bank. Is it management's decision to collect restitution, or to prosecute?Management and the DA may disagree. You're in the middle. Join in this discussion in the Public Security forum.

If you have a branch that is robbed, what procedure do you have, or should you have, to notify your other branches? Is it necessary, or just a good thing to do? You can join in this discussion here.

The Private Forum also has a security section where more sensitive discussions take place over things like participating in the FBI's Financial Institution Crime Day, software to assist in case management, backing up cameras and what to do about mental illness in the workplace.All these topics and a lot more are being discussed in the Private Security and Private +Law Enforcement forums.

To comment in the BOL threads you must be a registered user. You can register here. If using your bank email account, you will be given access to the private forums. If you are a current registered user for the threads, but don't yet have access to the private forums, using your bank email address send a request for access to Once your registration/request is approved, you can access the Private Security forum here.

CrimeDex Alerts Increased in September

The first CrimeDex alert that crossed our desk in September was bizarre! It involved unauthorized ATM withdrawals in southern California and ATM and purchase transactions across the border in Tijuana. A photo taken after one of the transactions shows the suspect leaving on a bicycle. Across the country in Massachusetts, Eastern Bank warned subscribers of a series of robo-calls attempting to collect debit card information from targeted customers. Another alert asked for assistance identifying a suspect who opened a new account with a fraudulent ID and deposited worthless checks in a bank in San Francisco. The Red Canoe Credit Union in Washington state reported a $3725 counterfeit cashier's check that apparently arose from an internet scam "roommate wanted" advertisement. These alerts and four dozen more appeared during the month -- each of them provides valuable insight into the schemes and actions people will use to try to make a dishonest living at someone else's expense.

BOL CrimeDex alerts provide timely warnings of scams that may be targeting individuals or businesses in your area. BOL CrimeDex subscribers have avoided opening accounts for persons identified in alerts. Other subscribers use the alerts as timely object lessons in security training.

Blogging on Facebook
Be sure to check out the Sept. 12, 2011 Facebook post about employees defending themselves in the workplace. This employee fired back at armed robbers, and was fired himself for doing so.While you are there, check out other recent posts about signers on business accounts and laws affecting these business accounts. Read all about it on our Facebook page.

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First published on 09/30/2011

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