25 Hoosier Banker February 2016 About the Author Tracey Santor is a second vice president for the bond and financial products financial institution department of Travelers. An associate in claims and in fidelity and surety bonds, Santor holds designation in chartered property casualty underwriting and currently is working toward designation as a registered professional liability underwriter. She is a past chairman of the SFAA Fidelity Claims advisory board, a past director on the Surety Claims Institute board and past editor for the Fidelity Law Association newsletter, as well as a past president of the Fidelity Law Association. Santor also has served as the fidelity chair for the torts and insurance practices section of the American Bar Association. She is chairman of the fidelity advisory committee for the Surety Fidelity Association of America and a graduate of North Texas State University. The author can be reached at 860-277-5725, email: TSANTOR@travelers.com. Travelers is an associate member of the Indiana Bankers Association. switch reveal that EMV technology has led to increased fraudulent activities in ecommerce and telephone transactions – known as card-not-present (CNP) transactions. What does that mean for community banks? Community banks and credit unions are at risk of being targets for CNP fraud, even after instituting EMV cards. However there are numerous measures available to mitigate the risk attendant to fraudulent payment card transactions, including CNP transactions. What measures can banks take to protect against CNP fraud? CNP transactions require creative approaches to authentication, because the merchant does not have access to the card and cardholder for the transaction. The industry has developed a litany of authentication methods, but has advocated for the use of three particular approaches: 1. CAP/DPA ‒ The Chip Authentication Program for Indiana marks its 200th anniversary of statehood this year. As part of a year-long celebration, the Indiana Bicentennial Commission is minting a commemorative medal, for which the IBA has been named the presenting sponsor. This sponsorship entitles IBA-member banks to serve as exclusive distribution points for official medal order forms. Please note that banks do not house inventory or collect funds, but simply make order forms available. To facilitate your participation in this project, the IBA has provided kits to member banks; the kits include all supplies needed, plus instructions and an IBA logo window cling. The IBA logo designates your bank as an eligible order form distribution point. This bicentennial medal project is an ideal way to share Indiana’s proud heritage with your community. For additional materials to promote the project further, visit indianabankers.org/bicentennial for a variety of downloadable images, such as statement stuffers, posters, customizable print ads, a link to an online order form through the state of Indiana, plus a QR code that member IBA-Member Banks Sponsoring Bicentennial Medals MasterCard and the Dynamic Passcode Authentication for Visa use microprocessor and payment applications to generate a readable cryptogram; 2. 3D secure ‒ This is a tool that payment networks support where the card issuer determines whether the transaction will require a static or one-time password based on the card issuer’s preferences and the level of risk it assigns to the transaction; 3. Tokenization ‒ Digital payment tokens replace traditional customer account numbers for ecommerce and mobile transactions. t banks may post online or share through electronic messaging. Indiana became a state on Dec. 11, 1816, and we thank you for helping to celebrate our history. For questions or more information, please contact IBA’s Christina Bennett at 317-387-9380, email: cbennett@ indianabankers.org. t Learn IBA website basics and how to register for IBA events through instructional videos. To view, click on the red YouTube arrow of Hoosier Banker Digital. t Video Bonus: IBA Instructional Videos
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