Experts discuss financial fraud at Money 20/20 in Las Vegas

Updated October 22, 2018 - 7:37 pm

Financial services companies can do a better job battling online fraud if they share more information about suspect activity with one another.

That was a recurring message at several panels dedicated to cybersecurity and fraud at the Money20/20 conference in Las Vegas. The four-day show, expected to draw more than 11,000, is dedicated to the payments industry and the technology disrupting the financial industry. It runs through Wednesday at The Venetian.

Individual financial services firms, especially small banks, don’t have enough data on particular acts of fraud to build effective models to identify it, said Michael Reitblat, co-founder and CEO of Forter, which offers payment fraud prevention solutions.

Financial firms are investing billions of dollars in algorithms using artificial intelligence to identify fraudulent transactions in real time, Reitblat said, but the technology’s success relies on inputting millions of examples. Even if a bank had 10,000 cases of certain fraud, it wouldn’t be able to create a strong defense.

“AI has a fallacy problem. It is only as good as the data we feed into it. It is only as good as how we teach it. You can’t say (to the AI technology), ‘Here is a billion fraudulent transactions’, because they are all very, very different,” he said.

Banks’ efforts to deploy artificial intelligence effectively are also hindered by outdated legacy technology, Reitblat said, but that roadblock will disappear as banks continue to upgrade.

Nonetheless, he and Pedro Domingos, a professor at the University of Washington specializing in machine learning, said it will be toughfor banks to fully defeat fraud groups because some of those groups, including nation-state actors, are using artificial intelligence to breach financial institutions and their clients.

“It is really annoying to me that one person gets breached and then thousands more can be breached in exactly the same way. And the fact that big banks are talking to each other isn’t helping that aspect of the problem,” said Ellen Richey, chief enterprise risk officer at Visa.

Visa tracks suspicious transactions with a merchant back to their source, Richey said. It then notifies other merchants about the particular computer address.

Passwords and knowledge-based authentication — the questions companies ask to prove users’ identity, such as the name of their first pet — are not efficient tools, she said. There is enough information on social media about individuals for a fraudster to figure out the answers.

Richey said tokenization and biometrics will be deployed by more firms to fight fraud. Tokenization is the process of replacing sensitive account information sent over the internet, such as the 16-digit account number, with a unique digital identifier called a token. Examples of biometrics includes facial recognition and fingerprints.

Biometric authentication, though strong, can still be copied and should be used along with other security steps, she said.

The Review-Journal is owned by the family of Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson. Las Vegas Sands operates The Venetian.

Contact Todd Prince at 702-383-0386 or tprince@reviewjournal.com. Follow @toddprincetv on Twitter.

ad-high_impact_4
Business
Xtreme Manufacturing and Snorkel at World of Concrete
World of Concrete boasts 1,600 exhibitors across 745,000 net square feet at the Las Vegas Convention Center. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
CAT Smartphones displayed at World of Concrete 2019
CAT phones for trade workers on display at the 2019 World of Concrete convention. (Bailey Schulz/Las Vegas Review-Journal)
More woman-focused workwear coming to market
Carhartt Company Gear senior brand manager Katelyn Donah discusses a growing percentage of women in skilled trade professions. (Bailey Schulz/Las Vegas Review-Journal)
MGM Grand Plans To Add Retail And Dining To Its Strip Facade
MGM Grand President and Chief Operating Officer Scott Sibella said executives are “discussing redeveloping that entire frontage of the building out to the Las Vegas Strip.” (Todd Prince/Las Vegas Review-Journal)
Boyd Gaming planning new corporate campus
Casino operator Boyd Gaming Corp. has filed plans to build a new corporate campus. The plans call for two 10-story office buildings and a six-level parking garage in the southwest Las Vegas Valley. Boyd Gaming operates The Orleans, the Suncoast, downtown's California Hotel and other properties. The new headquarters would be just a mile from its current main office building.
Bellagio Conservatory transformed to celebrate Year of the Pig
The Bellagio Conservatory Team transformed the 14,000 square foot conservatory to commemorate Chinese New Year, the holiday that marks the end of the coldest days of winter. (Rachel Aston/Las Vegas Review-Journal)
CES 2019: Intro uses sound to connect people
Intro, a startup that is part of the Future Worlds Accelerator in the UK, has an app that uses ultrasonic sound to find people and companies nearby. (Mat Luschek/Review-Journal)
CES 2019 Video: CES wraps up another year
Time-lapse video of the action at CES 2019 in Las Vegas. (Mat Luschek/Las Vegas Review-Journal)
CES 2019: Create your own beauty products
Beauty Mix by BeautyByMe is a product that lets you create your own cosmetics and beauty products. (Mat Luschek/Las Vegas Review-Journal)
CES 2019: Picobrew’s home brew machine
Picobrew brings automation to homebrewing. (Mat Luschek/Las Vegas Review-Journal)
CES 2019: Surviving CES
What it's like to spend four days working the mammoth tech convention. (Jason Bracelin/Las Vegas Review-Journal)
Haier’s smart home
Haier presented smart home technology at CES 2019.
CES 2019 VIDEO: Foldimate makes laundry day easy
Foldimate has created a machine that will fold your laundry for you. Just feed it anything you need folded and it will do the rest. (Mat Luschek/Las Vegas Review-Journal)
CES 2019: Opte device corrects skin spots
Opte from Proctor and Gamble is a device for correcting spots and freckles from skin. It analyzes the area for spots and then covers them with a serum of matching skin tone. (Mat Luschek/Las Vegas Review-Journal)
Circa hotel-casino in downtown Las Vegas unveiled
Derek Stevens reveals Circa hotel-casino in downtown Las Vegas. He plans open by the end of 2020. (K.M Cannon/Las Vegas Review-Journal)
Circa, new casino coming to Fremont Street
Casino owner Derek Stevens announces his new property Circa, coming to Fremont Street in downtown Las Vegas in late 2020. (Michael Quine/Las Vegas Review-Journal)
Dreenk My Oeno makes wine suggestions
At CES 2019 in Las Vegas, the Dreenk My Oeno tells you all about wine.
Polaroid One Step Plus camera unveiled at CES 2019
Polaroid has moved into the digital age with its One Step Plus camera with Bluetooth. With the connected app, it turns your smartphone into a remote for the camera, along with filters and features. (Mat Luschek/Review-Journal)
Amazon is everywhere at CES 2019 in Las Vegas
Seemingly everything works with Amazon Alexa
LG Smart Mirror helps you dress snazzy
LG’s Smart Mirror is less of a mirror but more of an assistant to help get you looking snazzy. It takes your image and recommends clothes for you or matches existing clothes with new clothes, which can be purchased right from the mirror. (Mat Luschek/Las Vegas Review-Journal)
Underwater robots make waves at CES 2019 in Las Vegas
Robosea is a company dedicated to underwater robotics. They produce consumer robots for underwater filming as well as commercial products which can be used for underwater research. (Mat Luschek/Las Vegas Review-Journal)
CES 2019 - Victrola record players spin in Las Vegas
A new spin on an old favorite, Victrola record players are meeting a demand for retro products. The brand is also making furnitures with built-in speakers.
CES 2019: Slamtec robots ready to serve
Slamtec is a robotics company out of China whose goal is to provide solutions for laser localization mapping and navigation. They have created two autonomous robots that can be used in areas such as bars, restaurants and malls. (Mat Luschek/Las Vegas Review-Journal)
Mixologiq drink maker appears at CES 2019 in Las Vegas.
This is the Mixologiq drink maker.
CES 2019: Veritable smart garden
Let’s face it; not all of us have green thumbs. And herbs are particularly difficult to grow, considering their constant need for sunshine. Enter the Veritable smart garden from Exky, which does it all for you. (Heidi Knapp Rinella/Las Vegas Review-Journal)
Bonnie Springs Ranch near Las Vegas being sold to developer
Bonnie Springs Ranch near Las Vegas is being sold to a developer, set to close in March. Bonnie Springs, west of Las Vegas off State Route 159 — next to Spring Mountain Ranch State Park — spans more than 60 acres and was on the market for $31 million. The developer and his project partner are under contract to buy the ranch and plan to chop it up mostly into custom-home lots. The plans includes a 25-room motel, a restaurant and a 5,400-square-foot event barn.
Bone-conduction headphones form Aftershokz
Aftershokz offers bone-conduction headphones - headphones that don’t go in the ear.
CES Happy Hour party at Hangover Suite at Caesars Palace
Conventioneers mingled during the Hardware Massive CES 2019 Happy Hour Bash at The Hangover Suite at Caesars Palace in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Autonomous Cars and Futuristic Aircraft Rule CES
Day two of CES was dominated by autonomous cars and futuristic aircraft in the North Hall of the Las Vegas Convention Center.
TekNekSavr fights neck problems caused by smart phones
Atiya Syverson invented the TekNekSavr to help fight neck and head problems caused by strains while typing on smart phones. (Mat Luschek/Las Vegas Review-Journal)
TOP NEWS
News Headlines
Home Front Page Footer Listing
Circular
You May Like

You May Like