Transaction fraud continues to be a top risk for financial institutions across the country. We are back with our fraud expert and Allied Solutions Vice President of Risk Consulting, Ann Davidson. She will be joined by Tracie Wilcox, the President and CEO for On Tap Credit Union.
In today’s episode, we are going to discuss the impacts of this rule and its impact on Card Not Present Fraud.
- [01:20] For over a decade, the Federal Reserve Board had Reg II for card present. In 2023 the FBR created Reg II for card not present. These are transactions that are done on the internet or online.
- [03:10] It is essential to start this journey from a credit union’s perspective of understanding what layer of security they have in their currently selected networks. That will give you some information on what security features you already have in place and what is being offered that you don’t have in place. That is likely going to be eliminated when a merchant is going to reroute to networks you didn’t select.
- [03:51] It is not a new fraud exposure but it is a more severe exposure.