Head of Fraud and Dispute, S-Bank Ltd.,Finland

Member, Finnish Card Risk Management

Editor, Finnish Card Security webpages

Member, ACFE

Member, IAFCI

• S-Bank Ltd is a part of the S-Group, a Finnish

retailing organization

• 2.7 million customers

• 1.5 million payment cards

• 1.5 million access codes to online banking

• 4.14 billion € deposits

ATM FRAUD

SKIMMING DEVICES

CALLS ON COMPROMISED CARDS

PHISHING

419 SCAM

INVESTMENT SCHEMES

Card fraud in Asia

costs banks approx.

309 million € (Php

17.8 billion) annually

and is rising by 20%-

25% each year

malware stole an

estimated 56 million

debit and credit card

numbers

breach at Target,

which lasted only three

weeks and exposed 40

million cards.

Trends around the world:

• Fake ATMs (Brazil)

• ATM malwares (Russia,

Ukraine, Mexico and

South-America)

• Stealthy, Razor Thin ATM

Insert Skimmers

• Card and Cash Trapping

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0.1

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USA Thailand Indonesia DominicaRepublic

Cambodia Brazil

83%

44% 44%

33%

22% 22%

• Fraudsters arrived from Bulgaria to Sweden, rented a car and drove ~800km

• In 1 month, they attached skimmers in almost 20 ATM´s, stole >5000 credit card details.

• Withdrawals with the copied cards were made in Chicago and Toronto

• Finnish border authorities recorded >50 border crossings between Finland and Sweden to these fraudsters during this episode

• The fraud was done from August to September 2011.

• Three of the syndicate members were arrested in the

western part of Finland in November 2011 and were

sentenced to 50 months in jail.

• They profitted almost 50 000 € (Php2.9 million) with the

copied cards.

• Everyday S-Bank received approx. 150 new

compromised cards which had to be closed from Dec. 6

– 20.2011. S-Bank´s monitoring system alerted its fraud

department of these compromised cards.

• August 2014: Finnish police froze a transfer of 336 000 €

(Php19.3 million) to a South African bank account based

on the suspicion of it being a Nigerian Scam.

• A Finnish car dealership company, which made the money

transfer, was supposed to acquire an investment of 33.6

million € (Php1.9 billion) from the wife of the deceased

president of the African state of Zambia.

• After the money transfer was frozen, the car company´s

CEO & his associates still re-attempted to transfer the

money to the said South African bank account as they

claim to have had a binding agreement with the group and

expected to receive the funds.

WinCapita

• biggest ponzi scheme in

Finland´s history

• was in operation in 2005-

2008

• marketed itself as an

investment club

• claimed to give 400%

profit to their customers

• 10,000 people invested

• 20 full-time police officers

and 3 prosecutors

involved in investigation

• scammed a total of 97

million € (~Php5.5 billion)

• high-ranking Finnish army

generals, politicians

invested

• investigation still going on

Timo

Martiskainen,

sentence pending

Risto

Hentunen,

sentence

pending

Tiina Wartti, 1 year and 3

months in prison

Hannu Kailajärvi, 5 years

in prison

1. Point of Sale Malwares

2. Mobile Wallets Fraud

3. Internet and Tor (The Onion Router Network)

4. ATM Fraud in Asia and United States