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efsg meeting and fraud forum held in ljubljana

Sharing Knowledge with Fraud Experts across Europe

A European Fraud Sharing Group meeting and Fraud Forum were held from May 31st to June 1st in Ljubljana, Slovenia.

Mercury Processing Services International regularly holds an annual event called Fraud Forum for its international clients, with an aim to keep them informed of the latest trends and novelties related to fraud detection and prevention. This year, the Fraud Forum was held for the 7th time in a row, just a day after Mercury Processing Services International hosted its first European Fraud Sharing Group meeting, which brought together more than 200 fraud specialists from all over Europe to share and exchange information and experiences in fraud prevention and security.

Both events were supported by top management of Mercury Processing Services International: the EFSG meeting started with an introductory note by the CEO, Zdenek Houser, while the Fraud Forum participants were greeted by the CBO, Tatjana Novak. The organizers extend their gratitude to everyone who participated and contributed to two very interesting and informative days dedicated to fraud prevention in Ljubljana.

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European Fraud Sharing Group MEETING

The annual EFSG meetings gather numerous participants from all over Europe, providing them with an opportunity to meet and exchange experiences with European fraud experts. This year's meeting held in Ljubljana, and hosted by Mercury Processing Services International, attracted attendees from Sweden, Norway, Estonia, Germany, Poland, UK, Slovenia, Croatia, Serbia and many other countries, allowing them to network and discuss themes and issues with key people across the fraud prevention and risk management industry.

We are living in a world where everybody, especially young people, is always on the lookout for the next big thing – and so are the fraudsters.

They are always looking for new ways to beat security. It is therefore it is important for our industry to always be on the lookout as well, using any means necessary and sharing knowledge with other fraud experts when possible. 

At the meeting we heard from fraud experts about the latest fraud trends and how mobile payments are affected by fraud. Kristian Eichertz Stephansen and Sune Gabelgaard, Senior Analysts at Danske Bank, discussed what the bank has been doing to prevent fraud in mobile payments, and how fraud prevention has changed since the early days.

What does the future hold when it comes to staying secure and fighting fraud – asked Simon Breeden, Senior Fraud Solutions Consultant at NCR Limited, also tackling questions such as how digital banking is changing the fraud landscape, what impact this has on banks trying to prevent fraud and how the omnichannel solution fits into all this.

European Fraud Sharing Group's Objectives

  • Maintain a forum in which factual, fraud related information is freely shared between professionals employed in Fraud & Risk Divisions of financial and economic institutions all across Europe, aiming to fight fraud jointly across the borders and reduce fraud losses in a joined effort.
  • Establish a communication platform in which fraud warnings can be disseminated and common issues can be addressed, aiming to reduce (or even prevent) the consequences of financial fraud for all participating financial and economic institutions, regardless of other commercial interests.

The anonymity provided by the Internet can be a challenge for businesses to distinguish between genuine and fraudulent customers, leading to significant CNP (Card Not Present) losses. Fraudsters take advantage of this fact to mask fraudulent transactions as legitimate ones, exposing organizations to financial loss, reputational risks and potential customer attrition. Aleksander Pivk, Practice Leader at SAS Institute Adriatic Region, talked about fraud detection for cards best-practice to help organizations establish security.

Another interesting item was the presentation by Ron Teicher, Founder & CEO of EverCompliant, who discussed and demonstrated web crawling and money laundering on the internet. While most people associate cybercriminals with hacking and security breaches, many of them have begun exploiting vulnerabilities in the e-commerce industry as well, using a new scheme called transaction laundering. By using transaction laundering, cybercriminals have found a way to bridge the gap between sellers of illicit (and often illegal) merchandise and the legitimate payment world. This, in essence, allows for the existence of a highway of illegal commercial activity going through the legitimate payments infrastructure.

During the event, experts from Mercury Processing Services International also had the opportunity to speak and exchange experiences. Fraud Product Manager Grozdana Marić described how Mercury Processing Services International deals with payment card fraud, sharing our company's experience and expertise tailored to meet regional, local market or individual client requirements and fraud operations strategies.

Hrvoje Rončević, Knowledge Asset Manager, and Ivica Jurčić, Fraud Intelligence Team Leader and Senior Product Owner, talked about a Fraud-IT project that enhanced the fraud detection and prevention capabilities of Lynx FMS, while Aljoša Lovrić Petrić, Head of Innovation and Prototyping Department, and Ladislav Grgac, Product Expert, explained the potential of new technologies using appropriate products to perform online transactions faster, safely and with control in mind. Robert Poljak, Fraud Analyst, shared an interesting case of fraudulent cash withdrawals at post offices.

The day ended with two thought-provoking workshops addressing the topics of family, HCE and China fraud. The workshops were conducted by EFSG Board members who discussed ways to detect and prevent these kinds of fraud and how experiences on different markets change according to the habits and practices in those countries.

We are honored that we hosted the annual European Fraud Sharing Group meeting in Ljubljana this year, as we strongly believe that EFSG should be very proud of its deep influence in fraud prevention and of the success of this framework that has proven to be a perfect arena to keep up to date and network with others in our industry. Extremely positive feedbacks we received from participants, demonstrate that we did an excellent job, beyond our framework so far.

Grozdana Marić, Fraud Product Manager at Mercury Processing Services International

FRAUD FORUM

On June 1st, we started fresh early in the morning with our annual Fraud Forum which was held for the 7th time. Our clients had a chance to learn how our company is keeping up with the fight against fraud and learn about the latest trends and news, but also to hear from our guest speakers.

The first guest speaker was Damir Zolota, an expert in reading facial micro-expressions and body language, who explained what micro-expressions are and how to spot them in everyday life, as well as what our facial features tell other people about our personalities, including which part of the face can show us if a person has a tendency to lie or to be a fraudster. 

Also very interesting was the presentation given by Boris Jereb from the Slovenian Ministry of the Interior. Mr. Jereb currently works on forensic analysis of electronic devices for criminal police which allowed him to give an interesting insight into skimming and showed how skimming devices work.

Knowledge and awareness are an important issue in the field of payment card fraud, and it is important to know how these devices look and how they can be recognized when installed on ATMs. Mr. Jereb explained the basic parts of skimming devices, also presenting electronic parts that can be bought in electronic shops, giving special and priceless experience to the Fraud Forum participants.

Two presenters from MasterCard Slovenia, Boštjan Fabjančič and Luka Grabovšek, gave an overview of key aspects of the new legislative framework coming in with an adoption of PSD2, also explaining the role of Strong Customer Authentication in the future of omnichannel payments. 

Radomír Adamkovič from VÚB banka, talked about monitoring and reporting fraud trends, while his colleague Tomáš Kmiť gave a card fraud overview in VÚB and Slovakia for the last year, including the latest ATM fraud trends in other European countries.

The speakers on our part were: Grozdana Marić, Ivica Jurčić, Nataša Benčić, Renata Maligec, Sara Novakovič and Vanesa Filipčić. Especially interesting was a presentation by Nataša Benčić, who talked about the very current topic of combating fraud by using Artificial Intelligence, as well as a presentation by Vanesa Filipčić, who showcased issuing fraud trends in Slovenia through examples of some of the most frequent fraud types.