Navigating A New Payments Landscape
Fraud Prevention, Risk Management and Regulatory Compliance
WHITE PAPER - October 2005
Executive Summary
Today there are significant changes in the payments industry. It is an era being defined by a declining volume of paper checks and associated revenue, and an increasing volume of electronic payments that provide less revenue. This shift brings to the forefront a need to re-address where the risks for payments fraud and expense exist, as well as what the current best practices are to protect against these risks.
Although the exact nature and timing of Check 21's impact on future check fraud remains in question, it is clear that check truncation and check destruction are creating new opportunities for fraud.
At the same time, the payments terrain is being impacted by other recent legislation, such as the Sarbanes-Oxley Act, Gramm-Leach-Bliley Act, and the Patriot Act. These are placing pressure on banks and corporations to improve their processes to better manage their risks.
This paper explores some areas of interest for banks and their corporate clients as they relate to fraud prevention, risk management, and regulatory compliance today.
