MARCH / APRIL 2009 All debit all the time SM pulsationsThe Debit News MagazineSM Prepare. Protect. Prevent. PULSE Launches Revamped ATM & Debit Card Safety Awareness Campaign TM and debit card safety, financial fraud and identity theft steps to protect themselves,” said Jim Cichy, PULSE vice president, have been hot topics in the financial services industry in fraud management. “PULSE can help participants help their A recent years. Some experts suggest that the precarious state cardholders.” of the economy may lead to an increase in criminal activity. Those This year, PULSE has revamped its ATM & Debit Card Safety who are otherwise upstanding individuals may become desperate Awareness Campaign. Consumer materials have undergone a when faced with harsh financial difficulties. major facelift with bold new colors and graphics. Tried-and-true While it is important to keep these issues top of mind year tips are reinforced by new techniques for protection against the round, PULSE has designated June as ATM & Debit Card Safety latest advances in the fraud arena. Awareness Month. “Perpetrators have developed new technologies that are so “It’s a good time to analyze current safety precautions and obscure they are virtually impossible to detect,” said Cichy. rejuvenate programs as needed. Now more than ever, cardholders “Awareness and early detection are critical to minimizing losses need to be aware of current and possible future threats, and take should an incident occur.” (continued on page 7) PULSE to Pilot Internet PIN Debit ULSE is partnering with technology provider Acculynk to test consumer use of PIN debit for Web-based shopping. The pilot test will involve selected PULSE merchants and financial institution participants and is slated to begin in the second quarter of 2009. PAcculynk’s PaySecure™ technology enables consumers to use their debit cards with a PIN to pay for online purchases. The goal of the pilot test is to assess consumer acceptance of the new payment method. (continued on page 10) Stored Value Mobile Banking and Top 10 Emerging Cards as Mobile Payments Fraud Risks Budgeting Tool Page 8 Page 11 Page 5 VIEW FROM THE TOP Dear PULSE Participant, TM and debit cards represent one of the most secure forms of payment available. Yet, financial services providers, merchants and consumers must remain vigilant A in order to protect against fraudsters whose technology and techniques are increasingly sophisticated. While PULSE promotes debit security throughout the year, we designate June as ATM & Debit Card Safety Awareness month. We feel it is important for financial institutions and cardholders alike to be aware of simple tips that can dramatically reduce the risk of financial fraud or other losses involving card use. In early June, PULSE will release a series of ATM and debit card safety guidelines Dave Schneider for consumers to the national media. We also have made a variety of safety and security materials readily available to your financial institution, including statement inserts, card protectors and electronic brochures. Another weapon PULSE offers participants in the fight against debit fraud is the “We feel it is important DebitProtect® service. This proven neural network fraud detection system alerts the card issuer when a suspicious transaction occurs, thereby enabling the issuer to inves- for financial institutions tigate the transaction and, if appropriate, block the card. Financial institutions using DebitProtect have confirmed that the service has helped them to significantly reduce and cardholders alike to the impact of fraud on both issuers and cardholders. We offer the core DebitProtect service at no charge to PULSE participants. If you have not signed up for DebitProtect, be aware of simple tips I urge you to do so. In recent years, consumers have shown that they are increasingly comfortable that can dramatically using debit in general, and PIN debit in particular, across many different merchant categories, from gas stations to grocery stores, high-end specialty retailers and even reduce the risk of full-service restaurants. PIN debit offers consumers several distinct benefits, including convenience, cash back at many locations and significantly lower fraud risk. Financial financial fraud or other institutions, too, benefit from lower fraud losses and fewer chargebacks with PIN debit, as well as from PULSE’s highly competitive PIN debit interchange rates. losses involving card Consumers’ continued use of both PIN and signature debit depends on the financial service industry’s continued success in fighting card fraud. Please join me in making use.” ATM & Debit Card Safety Awareness month a success by encouraging your institution’s cardholders to review the security tips provided in PULSE’s statement inserts, card protectors and brochures, as well as at www.pulsenetwork.com/debitsafety. Thanks for your continued support of PULSE. Sincerely, Dave Schneider President All debit all the time SM 2 PROFESSIONAL DEVELOPMENT PULSE ACADEMY UPDATE he 2009 PULSE Academy series June: 21st Century ATM Twitter to inform consumers about is well under way, providing Management debit cards and understand their prefer- T network participants with This presentation will address ences and concerns. This session will multiple opportunities for continued emerging ATM technologies that can show how financial institutions can use professional development. Following help participants maximize the reach social media to reach account holders. sessions in January, February and April and profitability of their current ATM on customer segmentation, the outlook programs. ATM fraud and prevention The dates for both events will be for debit and debit card fraud preven- techniques also will be addressed. announced at a later time. For further tion, summer sessions will address information on PULSE’s professional subjects at the heart of participants’ July: Social Media 101 development program or to access any debit card programs. Reaching account holders is easy session on-demand, simply visit with social media toola. Learn how www.pulsenetwork.com and select the www.DebitFacts.org uses Facebook and “Development & Training” Quick Link. PULSE Promotes 2009 ATM & Debit Card Safety Awareness Campaign ULSE recently sent out an e-flyer and mailer promoting the 2009 ATM & Debit Card Safety Awareness Campaign. These marketing Ppieces described the updated materials available for distribution to consumers. To order new statement inserts (see page 7 for samples), card protectors, deposit envelopes and Web brochures, please visit www.pulsenetwork.com/debitsafety or call 800-420-2122. 3 p u l s e n e t w o r k . c o m Louisiana Bankers Form Anti-Fraud Task Force n response to growing concern among common concerns, practices and solutions LBA has set up a Web page with links to Louisiana financial institutions over the for reducing fraud, from both a response product and service providers and informa- Ieffects of payments fraud, the Louisiana perspective, when a loss occurs, and a tion resources to help banks manage fraud Bankers Association (LBA) has assembled prevention perspective. risks. The organization also offers semi- an Anti-Fraud Task Force. “The task force started out small but nars on risk management issues. “In 2007, we started getting feedback has grown to 95 participating banks,” said “It’s a tough challenge. It’s like peeling from our banks about growing fraud Boneno. “Discussion topics include what an onion – there are a lot of layers,” said losses,” said David Boneno, LBA general they’re seeing in the area of fraud, and Boneno. “Since we launched this group, the counsel and the organization’s point person what practices they’ve initiated that have bankers have become more aware of what’s for the task force. “We thought it would be helped. They have also guided us on pos- going on out there, and we’ve also reached helpful for banks to come together and act sible legislation that we have pursued.” out to retailers, restaurant owners and as a sounding board for one another on The task force recommended that a other groups.” these issues.” uniform fraud incident report form be Louisiana-based banks that are inter- The task force is composed of represen- developed for reporting financial crimes. ested in appointing a representative to the tatives of banks and savings institutions, The group got input from law enforcement, task force should contact Ali Smith at as well as other professionals. The group and the form is being distributed for state- 225-387-3282 or [email protected]. meets quarterly to share information about wide use by financial institutions. DebitFacts.org Shop Wisely with Debit ULSE’s debit information resource, • Set aside an amount you think www.DebitFacts.org, offers consum- you can spend. Pers advice on planning for major • Make a list of potential gifts purchases from personal finance expert or expenditures for each Carol Akright. person or occasion. “Nothing erodes your extra cash more • Put in the prices and add up your Most importantly, she reminds consum- than impulse buying – especially when total. ers to guard their information carefully, the TV ads, catalog glossy pages and front- • Shop early and look for bargains. whether they are using cash, checks, debit of-the-aisle displays grab your attention,” or credit cards. says Akright, a Certified Financial Planner “Debit card transactions are not only DebitFacts.org was launched last year and author of Funding Your Dreams convenient, but with online banking, PIN as the centerpiece of PULSE’s Consumer Generation to Generation. “As a financial debit transactions are recorded nearly Debit Awareness Campaign, with the goal planner, I ask my clients to tell me their instantaneously and let you see every night of informing consumers about the uses and budget in advance. We plan first, then where your balance stands,” Akright tells benefits of debit. PULSE participants are spend.” site visitors. “Debit card transactions let encouraged to utilize the site as an infor- Akright urges consumers to track fixed, you track your finances daily and assess mation resource for their account holders.