The Global Gangs that Can Break Banking Institutions

4 Crime Rings to Watch

  • The Brothers’ Circle, a group based primarily in Russia with connections to the Middle East, Africa and Latin America that focuses on card fraud;
  • The Camorra, based in Italy and focused on counterfeiting and narcotics trafficking;
  • The Yakuza, based in Japan and focused on drugs, weapons and human trafficking, as well as white-collar crimes linked to legitimate business in construction, real estate and finance; and
  • Los Zetas, based in Mexico and focused on drug trafficking, extortion, money laundering, intellectual property theft and human smuggling.

International financial threats posed by organized crime rings should be catalysts for strategic change at banks and credit unions. In fact, a new study concludes the U.S. government’s ramped-up effort to fight organized crime is giving financial institutions incentives to change.

Fraud fighting is a cross-channel issue, although a majority of U.S. institutions don’t understand this, says David Nussenbaum of the consultancy Ernst & Young, which conducted the study.

“This is an opportunity for banks to think creatively,” says Nussenbaum, who heads Ernst & Young’s fraud control advisory and implementation practice. By reviewing suspicious transactions that raise flags on watch-lists, financial institutions can think more broadly about fraud detection and risk mitigation. he says. It’s a chance to open communications between compliance and fraud departments.

“As we’ve been trying to say before, these people are not just laundering money; these people are committing fraud,” he says.

“Pointing to threats such as card skimming, often backed by crime rings in Russia and Eastern Europe, banks and credit unions need to connect fraud dots across the enterprise”, Nussenbaum says.

Read more By Tracy Kitten at Bank Info Security

About Bruce Demarest

Bruce Demarest is a Identity Theft Protection Specialist. He has designed and taught classes to educate individuals and businesses in identity theft risk management. The individuals have learned how to continuously monitor their financial identities from credit fraud, plus how to monitor their personal identifying information for unauthorized use. His business clients have become compliant with the federal & state privacy laws. He has conducted information security audits to identify their potential problems and has designed security policies, programs, and practices to address those problem areas.
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