Welcome to the October issue of the Data Exchange newsletter, a production of AP Technology - your partner for industry-leading, client-side technologies enhancing the connection between banks and businesses. 

In this issue, read articles from AP Technology, Diamond Cluster, and other industry sources about the the current state of the payments landscape and how it's affecting check fraud prevention planning, technology investments, risk management strategies, and regulatory compliance efforts for both banks and their corporate clients.  And learn a little more about the AP technologies showcased at the AFP conference.

Navigating a New Payments Landscape:
Fraud Prevention, Risk Management, 
and Regulatory Compliance

A White Paper by AP Technology

In this era being defined by a declining volume of paper checks and associated revenue, and an increasing volume of electronic payments that provide less revenue, there is 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. 

Check 21’s exact impact on future check fraud remains in question.  However, 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.

VIEW WHITE PAPER

Since Check 21 was enacted approximately one year ago, the banking industry has been uncertain as to exactly what impact electronic check clearing will have on check fraud and the entire check clearing process.  Research is being conducted by various groups to evaluate the current state of affairs:

ICBA and ABA – On April 20, ICBA and ABA Chairpersons spoke to Congress regarding their assessment of Check 21’s impact.  ICBA’s comments were based on input from almost 400 community banks nationwide that responded to an ICBA survey conducted in April.  MORE...

The Federal Reserve Board - The Federal Board plans to conduct a survey assessing the impact of Check 21 in order to comply with requirements of the Act, but also to examine the evolution of the check processing system - post Check 21.  MORE...

BAI - BAI is a professional organization for the financial services industry focused on enhancing employee and organizational performance.  The 10th Annual CheckImage Conference, held September 26-28 in Orlando, arranged by BAI and ECCHO, featured two updates on the status of image exchange and archiving.  MORE...  

2005 AFP Conference 

Brings Record Attendance

Over 6,000 finance professionals gathered in San Antonio from October 9-12  for the 2005 AFP Conference.  The annual conference is a forum for financial professsionals from the U.S. and other countries to learn about industry trends and leading solutions.

AP Technology showcased its banking solutions suite that is designed to accelerate and increase adoption of a bank's  Treasury management products and services:

Unattended Web Treasury Reporting & File Transfers 
Transporter™ - Client software for unattended bank web access, single-key entry to request bank reports, and expedited or fully-automated file transfers via HTTPS, FTP, sFTP, FTPs, SSHFTP, or web services

Ø    Increased Positive Pay Enrollment
SecurePay™  - The most widely used client-side program available today for conversion and transmission of positive pay data to banks
SecurePayWEB™ - (www.securepayweb.com) The online positive pay file conversion service that is universally compatible with every bank format and accounting application - This ASP converts the customer’s payment file into a bank-compatible positive pay input file.

Faster Treasury Product Implementation & Improved Client Connectivity
fDX™  - A data conversion service that allows banks to increase and accelerate client implementation of their Treasury offering by converting any client input file to their bank’s required format - also creates unique file formats and reports for clients from the bank

AP Technology booth representatives included:
   Rich Love, Chief Executive Officer
   John Cipriano, Senior Vice President, Financial Services
   Donovan Perkins, Senior Vice President, Business Development
   Joe Briski, Senior Vice President, Marketing

Thanks to all those who stopped by the AP Technology booth.  From those who dropped their cards off, two winners, one from US Bank and one from Santa Barbara Bank & Trust, were randomly drawn to win an iPod!

Phishing-Related ATM and POS Debit Fraud:  A Growing Concern?
Posted October 20, 2005
From The Green Sheet
To what extent are email "phishing" scams contributing to ATM and debit-based fraud at the POS?
VIEW ARTICLE

Consumer Fraud Surge
Posted October 20, 2005
from News KLSA12, ShrevePort, LA
Shreveport-Bossier is under attack from hundreds of fraud schemes affecting everything from banks to businesses to consumers.  There are so many threats to our checks, credit cards and bank accounts that consumers are left wondering how to protect themselves.
VIEW ARTICLE

FDIC Warns of Phony Cashier's Checks
Posted October 14, 2005
from The Sacramento Business Journal
The Federal Deposit Insurance Corporation has sent a "special alert" to financial institutions cautioning them about counterfeit cashier's checks that may be in circulation that bear the name and identification numbers of a Fresno bank.
VIEW ARTICLE

Fake Business Checks on the Rise
Posted September 16, 2005
from The Minneapolis/Twin Cities Business Journal 

There has been a dramatic increase in attempts to cash phony business checks in the Twin Cities.

VIEW ARTICLE

Banks Abandoning SSL on Home Page Log-Ins
Posted August 23, 2005
From Information Week

Some of the biggest banks have abandoned the practice of posting their online account log-in screens on SSL-protected pages in an effort to boost page response time.
VIEW ARTICLE

Q: What is required on the bank's side to run Transporter?

the ANSWER

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AP Technology

Headquartered in Carlsbad, California, AP Technology is focused on creating products that automate secure connections between businesses and banks.