19MAY 2019CXOINSIGHTSThe Changing Nature of Financial FraudBy Christopher DeAngelis, Senior Director, Fraud Strategy, Sallie Mae"Life comes at you fast" is a meme that knows no boundaries; anyone caught unprepared for this phenomenon may be blindsided and left behind. Elevator operators and bowling pin setters saw their skills replaced with electricity and machinery. When technological advancements came to the telephone industry, some switchboard operators saw the writing on the wall and were able to translate their talents to the TTY/TDD equipment that serviced phone calls for the hearing impaired. Others advanced beyond the limited set of obligatory phrases they repeated all day into the conversational and probing abilities required for transitioning into call-center employment. So, too, have criminals regularly faced the prospect of obsolescence. Once valuable safe-cracking skills have seen a diminishing benefit. Advances in modern medicine have rendered grave robbers and the lucrative black-market for cadavers archaic. And, in the realm of financial crimes, the adoption of EMV chip technology has brought payment card counterfeiters to a crossroads. While the assumptions were correct about U.S. card issuers seeing a rise similar to other countries in card-not-present fraud after chip cards were introduced, the impact to fraud has gone much deeper. Skimming magnetic stripes was always about exploiting a glaring vulnerability.
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