Cybersecurity from the Lens of Fraud Specialists New York Cash Exchange 2017

Transcription

1 Cybersecurity from the Lens of Fraud Specialists New York Cash Exchange 2017 Presented by: Tammy Gedetsis, KeyBank Enterprise Commercial Payments Kasie Spence, Cedar Fair Entertainment Company

2 Disclaimer This document is designed to provide general information only and is not comprehensive nor is it legal advice. In providing this information, neither KeyBank nor its affiliates are acting as your agent, broker, advisor, or fiduciary, or is offering any tax, accounting, or legal advice regarding these instruments or transactions. If legal advice or other expert assistance is required, the services of a competent professional should be sought. KeyBank does not make any warranties regarding the results obtained from the use of this information KeyCorp. KeyBank is Member FDIC. CFMA #

3 Presenters Cedar Fair Entertainment Company Kasie Spence Corporate Director of Cash Management KeyBank Enterprise Commercial Payments Tammy Gedetsis Vice President - Senior Digital Product Manager 2 2

4 Agenda i. Payments Fraud: Current Environment ii. Types of Payments Fraud and How to Protect Against Them iii. Cedar Fair Case Study iv. Protecting Businesses from Payments Fraud v. Best Practices for Prevention and Recovery vi. Questions 3 3

5 Payments Fraud: Current Environment 74% Today of organizations were targets of payments fraud in 2016 Majority of companies continue to be impacted by payments fraud. Criminals are increasingly more organized and sophisticated. Sources: 2017 AFP Payments Fraud and Control Survey 4 4

6 Types of Payments Fraud Check Fraud Business Compromise (BEC) scams Wire Transfers 75% of organizations experienced check fraud in Sources: 2017 AFP Payments Fraud and Control Survey 5 5

7 Types of Payments Fraud Check Fraud Business Compromise (BEC) scams Wire Transfers 74% reported their organizations were exposed to BEC scams in 2016 Sources: 2017 AFP Payments Fraud and Control Survey 6 6

8 Types of Payments Fraud Check Fraud Business Compromise (BEC) scams Wire Transfers The 2nd most popular target for payments fraud in Sources: 2017 AFP Payments Fraud and Control Survey 7 7

9 Cedar Fair Entertainment Company One of the Leading Amusement-Resort Operators in the World 11 amusement parks 2 outdoor water parks 1 indoor water park 5 hotels 8 8

10 Cedar Fair Entertainment Company KEY STATISTICS Entertains more than 25 million visitors annually 850+ rides and attractions 120+ roller coasters More than 1,600 hotel rooms 9 9

11 Cedar Fair Treasury Overview EMPLOYEES Processes 40,000+ W-2 s annually COUNTRIES Hires from 40+ countries PAYROLL Has 5 employees processing payroll centralized processing fed into by each park PAYMENTS PROCESSED Bi-weekly pay, peak 25,000 employees 10 10

12 Cedar Fair Case Study Checks are deposited first by phone and later taken to a check cashing service 11 11

13 Cedar Fair Case Study Checks signed by unauthorized person 12 12

14 Cedar Fair Case Study Initiative to reduce fraud by transitioning to a paperless payroll 13 13

15 Cedar Fair Case Study 2012 BEFORE going green: 48% direct deposit 52% check 2016 FOUR YEARS INTO program: 81% direct deposit/pay cards 19% check 14 14

16 Cedar Fair Case Study Vendor request to change banking information in our ACH Accounts Payable process 15 15

17 Cedar Fair Case Study Appears to be a normal conversation between these two individuals 16 16

18 Cedar Fair Case Study The instructions follow and are forwarded for processing 17 17

19 Cedar Fair Case Study Communicated to upper management that the request was not authentic 18 18

20 Cedar Fair Case Study Corporate Information Systems communicates to associates on staying alert 19 19

21 Cedar Fair Case Study 20 20

22 Fraud Prevention & Best Practices Dual controls/separation of duties Employee education and awareness Ways to help protect your business include: Written and published policies and procedures Security alerts/ notifications Fraud prevention products from your bank Monitor your accounts frequently Create an environment where employees are empowered 21 21

23 Questions Questions Questions Questions Questions Questions Questions Questions 2017 KeyCorp. KeyBank is Member FDIC