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If you see ads touting software that you can download to immediately start writing checks and paying your vendors, you’ll want to tread cautiously. The provisions of the Bank Secrecy Act require that sellers of payment software complete several steps that will enable them to verify the legitimacy of their customers, says Richard Rogers, president of yourfavorite.com, publisher of checkwriter.com and several other payment applications. The reason? Payment software that’s available on demand and doesn’t require any verification of the purchaser’s legitimacy, could be used by anyone, anywhere in the world, to defraud others or commit terrorism. (more…)
Security Posts
Check Payment Software Requires Due Diligence
Tuesday, July 13th, 2010Payment Card Fraud
Tuesday, June 1st, 2010A recent study by Richard J. Sullivan of the Federal Reserve Bank of Kansas City looked at security within the payment card industry. As its title indicates, “The Changing Nature of U.S. Card Payment Fraud: Issues for Industry and Public Policy,” focuses primarily on potential public policy responses to payment card security. Even so, it offers insight and information of use to accounts payable professionals.
Since 2005, at least 2,221 breaches of card data in the U.S. have been made public; these encompass nearly 500 million records. Just eight extraordinarily large breaches – TJX, TD Ameritrade and Heartland Payment Systems, to name a few – account for about four-fifths of these records. So, while nonbank payment processors accounted for just two percent of the breaches, these covered nearly 40 percent of the records compromised. Nearly two-thirds (64 percent) of breaches are the work of outsiders. However, more than a fifth are a result of accidental disclosures by insiders. (more…)
