Welcome!

IoT User Interface Authors: Liz McMillan, Pat Romanski, Eric Robertson, Kevin Benedict, Craig Lowell

Related Topics: Agile Computing, API Journal, IoT User Interface, Cloud Security

Agile Computing: Article

Retail Banks - Dinosaurs in an Online World

We have a recurring issue with our bank - they regularly flag transactions as fraudulent even though the transactions are fine

I had some interesting (sic) experiences with two separate banks with regards to two business accounts that we keep with each recently. The problem highlighted two issues that were both in some ways intertwined:

  1. False positive flagging of online transactions
  2. Identity Management between bank departments

First let me set the scenario. I am CEO of Storage Made Easy, a business that can be categorized (in bank speak) as an online internet business. We are a business that spends a fair amount on online advertising through various different channels and who also uses best of breed online services to make our life easier. Therefore we spend money with other online based internet companies including companies like Google, Amazon etc and we pay certain providers through merchant gateways such as Paypal. I suspect we are not that different to other similar companies in this regards.

We have  a recurring issue with our bank in which they regularly flag transactions as fraudulent even though the transactions are fine. These are what are referred to in the industry as 'false positives'. A false positive is a result that indicates a given condition has been fulfilled, in this case a transaction being flagged as fraudulent, when the condition was not or should have been fulfilled, and in this case the result is that the transaction should not have been flagged. The end result is that the credit card used to pay for such services is suspended until the end user (us) has negotiated with the fraud department of the bank to lift the ban and transactions that are flagged have to be re-submitted, a time consuming and costly process as it means all adverts stop running, payments are not made and someone within the business has to take time out of their day to sort the whole mess out.

You would think it would be fairly straightforward problem to fix. After all the transactions in question have a regular history of being paid each month, in most cases going back over 2 years. Unfortunately this is not the case, the bank merely says "our fraud detection system highlights these transactions as possibly being fraudulent and there is nothing that can be done". My ongoing question is why ? Why are you flagging transactions as being fraudulent that have a historic basis for payment in which the amount in most cases are identical to what was previously being paid over the past two years. This is largely a rhetorical question as no-one in the bank can answer it or even seems to care that it is a perfectly valid question that should be investigated.

The second issue involves getting in touch with the banks fraud department to arrange to have the block lifted. Normally when we speak with the bank we go through a telephone banking authentication process. The bank set this up with us and we have a pin and other personal and password details we have to give. The PIN relates to a challenge / response two factor authentication process. As a company we have a good knowledge of Identity Management, from Active Directory / SAML / Kerberos / LDAP through to OAuth OpenID etc and we also understand the challenges of integrating between the various identity management systems.

When we contact the fraud department they do not use our pre-defined identity management process at all. In fact they ask obscure questions about the account, such as "What was the debit amount for a transaction on 2nd January "etc. These are almost impossible to answer as a by-product of the fraud block is that online banking is also blocked and as we have paperless statements, there is no way to check or validate any of the questions being asked (which in any case are not in anyway related to the identity management process we have in place with the bank). When challenged as to why the fraud department is not using the existing identity management that we have in place the response is "We do not have access to that system". My guess is that as the fraud department seems to be outsourced to Mumbai, this is why, but this is not something we should care about or be impacted by.

My conclusion is that retail banking is akin to web 1.0 companies in a web 2.0 world. They have not changed their processes to work within the dynamics of the internet world, which is driven by online transactions, and their outsourcing exposes the lack of cohesion within their internal systems in which the customer suffers the consequences. There is also a certain type of arrogance within the culture of the bank that leaves me a little cold. There is a real "don't care' "can't do" type attitude.

It seems the option we have is to change banks but I really have little confidence this will solve the underlying issues as we already similar behaviour from the two banks we already use.

Banks now fail in the most fundamental thing you want them to be good at ie. lending money, storing your money and providing transparent secure access to it. They retain their position purely through lack of choice but it has often crossed my mind that a much better solution would be a consortium of similar minded tech companies who function as their own club that administer and provide their own financial services to each other.

More Stories By Jim Liddle

Jim is CEO of Storage Made Easy. Jim is a regular blogger at SYS-CON.com since 2004, covering mobile, Grid, and Cloud Computing Topics.

@CloudExpo Stories
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Cloud Expo, Inc. has announced today that Andi Mann returns to 'DevOps at Cloud Expo 2017' as Conference Chair The @DevOpsSummit at Cloud Expo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited to help the great t...
"At ROHA we develop an app called Catcha. It was developed after we spent a year meeting with, talking to, interacting with senior citizens watching them use their smartphones and talking to them about how they use their smartphones so we could get to know their smartphone behavior," explained Dave Woods, Chief Innovation Officer at ROHA, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"Venafi has a platform that allows you to manage, centralize and automate the complete life cycle of keys and certificates within the organization," explained Gina Osmond, Sr. Field Marketing Manager at Venafi, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.