Tag Archives: UMB Bank

cybercrime

Technology, preparation can help prevent fraud

Jason Mabee is vice president of treasury management for UMB Bank in Arizona.

Jason Mabee is vice president of treasury management for UMB Bank in Arizona.

Fraud can come in many forms, from counterfeit checks to stolen credit cards and trusted employees to savvy hackers. For businesses, fraudulent activity is always bad news. According to the Association for Financial Professionals’ (AFP) 2015 survey, 62 percent of companies were targets of payments fraud in 2014 with financial losses that ranged anywhere from a relatively small amount to millions of dollars.

The good news for businesses is that there are numerous measures out there that can help prevent and detect fraudulent activity. In addition, advanced technology is being developed and deployed now that will help companies better protect their operations and their bottom line.

The Many Forms of Fraud

According to the AFP, the most common form of fraud businesses encounter is through checks, corporate credit/debit cards and wire transfers. Paper checks continue to be the payment type most vulnerable to fraudulent attacks and account for the largest dollar amount of financial loss, even though their use continues to decline. Credit and debit cards are the second most popular form of business fraud, although they experienced a decline in fraudulent activity, down from 43 percent in 2013 to 34 percent in 2014.  And lastly, wire fraud incidents almost doubled from 14 percent in 2013 to 27 percent last year.

The newest form of fraud is cyberfraud in which criminals create an email account for corporate executives or vendors and send emails with payment instructions to employees in the accounting department. Employees who are unaware of the fake or altered email account will follow the instructions and make payment.

Be Prepared

While it may seem daunting, businesses can take steps to protect against fraudulent activity. Positive Pay is one example of how companies can get ahead of the game. Positive Pay is an automated fraud detection tool offered by most banks. Here is how it works: Companies cut checks every month and send the bank a list of all those checks, including check numbers, amounts and payees. As checks clear against the account, the bank makes sure the checks match up, eliminating any fraudulent or altered checks.

To protect against internal fraud, business owners should implement dual control and separation of duties. Understand who is in charge of what responsibilities on the financial side and make sure there are no gaps. Implement dual control over the businesses banking transactions, meaning the same person who is running payables should not be the same person who is reconciling accounts. Also, business owners should review financial statements on a weekly or monthly basis. 

To mitigate compromise in these areas, businesses should review all areas of their operation and put the proper preventions in place to protect against fraud. For instance, businesses should ensure their employees have the proper education and training for fraud detection. They should install, maintain and update spam filters, anti-virus software and firewalls. Reducing check writing, outsourcing payroll and having dual controls are additional tips that can help prevent fraudulent activity.

New Technology on the Way

In addition to being prepared, businesses will soon be able to rely on new technology to help protect against fraud. The latest and most anticipated technology is EMV (Europay, MasterCard and Visa) chip cards, which will have a major impact on lessening credit and debit card fraud. So much so that 92 percent of financial professionals believe EMV technology will be effective in reducing fraud at the point-of-sale.

Traditional magnetic stripe cards require a signature for security purposes, whereas the new chip cards will add an additional layer of sophisticated fraud protection through an embedded microchip that turns the cardholder’s information into a unique code that is difficult to duplicate or copy when used at a chip-enabled terminal.

Merchants and retailers are currently in the process of investing in new card reading technology that will accept EMV chip cards. If they do not update their technology, they could potentially be liable for fraudulent transactions and not the user or card issuer. Visa intends to institute a liability shift in the U.S. for domestic and cross-border counterfeit transactions effective Oct. 1, 2015. This shift will encourage Visa issuing banks to begin issuing EMV chip cards and merchants to begin deploying card swipe technology that can process the chip-on-chip transaction.

While new technology and preventative measures can help businesses protect against fraud, the truth is that it will always exist in one form or another. What businesses can do is educate their employees, make sure they are using the most up-to-date technology and work with their financial partners to ensure the best practices and protective measures are in place.

Jason Mabee is vice president of treasury management for UMB Bank in Arizona. He can be reached at Jason.Mabee@umb.com.

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UMB Bank expands Phoenix team

UMB Bank, n.a., a subsidiary of UMB Financial Corporation has hired Tom Goetzinger as vice president, portfolio manager and Sean Scibienski as vice president, business banking relationship officer for its Arizona team.

Goetzinger has more than 15 years of experience in the financial services industry. In his role, he is responsible for all aspects of portfolio construction including asset allocation, security selection and mutual fund analysis for high-net-worth individuals and families. Prior to joining UMB, Goetzinger was vice president and investment specialist at J.P. Morgan Chase.

Scibienski has more than 12 years of experience in the financial services industry. In his role, he is rfor new business, maintaining existing client relationships and building UMB’s presence throughout the Arizona market. Prior to joining UMB, Scibienski was vice president, commercial relationship manager at Arizona Bank & Trust.

“We are excited to welcome Tom and Sean to the UMB family,” said Jim Patterson, CEO of UMB Bank Arizona. “With their vast experience in the industry, we know they will bring a wealth of knowledge to our clients and associates.”

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UMB Bank opens Biltmore location

In the back of a large, architecturally beautiful, glass building on Camelback and 28th Street resides the newest bank to the Biltmore area, UMB Bank.

UMB Bank, a previous resident to the Biltmore area, has returned and brought with them hopes of improving their community.

“We want to become focused and help the community. Most of our team is involved in the community in one way or another, because we want to help Arizona grow,” said President of Arizona Region Robert Faver. “We are operating on what we call TUCE, and that stands for ‘the unparalleled customer experience’.”

After years of asking, customer’s requests have been fulfilled and UMB Bank is “proud to be a part of the prestigious financial district of the Camelback Corridor,” said Branden Zavala, transaction specialist II for the newly added branch.

“Our clientele here is great, we serve and target a lot of people here in this specific area, and so it’s a perfect location,” he said.

Vice President and Financial Center Manager Casey Seeger agreed with Zavala and added that while the Scottsdale community is important, they want to focus on the entire state.

“We didn’t, and don’t, want to be viewed as the Scottsdale bank,” she said. “We want to be an Arizona institution. So being at the center of the financial district really falls into our strategy.”

UMB Bank, while not excluding personal banking, focuses most on commercial and private wealth banking, said Faver.

“Our focus is to help commercial businesses. We want to help businesses grow and we want to grow with them,” he said.

Faver said the size of UMB and the service they provide is what makes them special.

“We have the backing of a large institution providing us the ability to handle large transactions, however we provide service from a community level.”

Both Zavala and Seeger agree with Faver on what makes their bank different than others, as well as holding their own beliefs.

Seeger points the finger of success at their provided customer experience and established history.

“Our company stands for a tradition of character and integrity. We are a 102-year-old bank and we have been able to sustain successfully for that long. We maintained when many in our industry did not, and that is a lot to be proud of,” she said. “We don’t have a bank on every corner so our business really is relationship based. Unlike big-box banks we are deeply rooted in the community because we want to serve the people and resident.”

Zavala, while discussing the banks uniqueness quoted UMB’s CEO, “We are the bank you used to have.”

He explains this quote by describing their principle to not make any empty promises.

“Let’s say you walked into another bank to sign up and they promise you all these things, like no fees and waived this and that, but when the problem actually arises, they throw policy at you. We don’t do that. We actually do what everyone else promises they can do,” he said. “UMB provides a commitment to a higher level of service and a truly unparalleled customer and employee experience. I know it sounds like a cliché, but it really is the heartbeat that we run off.”

Jim Patterson, CEO of UMB Bank in Arizona.

UMB Bank Announces New Camelback Location

UMB Bank, n.a., a subsidiary of UMB Financial Corporation (Nasdaq: UMBF), announces the opening of a new full-service banking center in Phoenix, Ariz. The new center will be located in the prestigious Camelback Corridor at 2777 E. Camelback Road and will replace the company’s current Raintree location. UMB plans to move into the new location this summer. The branch will be open from 9 a.m. to 5 p.m. Monday through Thursday and 9 a.m. to 6 p.m. on Friday.

In addition to offering full-service consumer banking, the Camelback location will include private banking, investment and wealth management services and commercial banking.

“We have moved our banking center to the Camelback corridor to provide our clients a more convenient location and better accessibility to our associates,” said Jim Patterson, CEO of UMB Bank in Arizona. “Our commitment to this market continues to grow, and we are making a sizable investment to expand our presence in the Arizona region.”

The Camelback location is one of two banking centers UMB has in the Phoenix and Scottsdale market. Its Kierland Commons banking center is located at 16210 N. Scottsdale Road in Scottsdale and is open from 9 a.m. to 5 p.m. Monday through Friday. To contact the Kierland office, call (480) 315-6800. To contact the Camelback office, call (480) 912-6720 or visit the UMB website at www.umb.com.

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UMB Promotes Faver to President of Arizona Region

UMB Bank, n.a., of UMB Financial Corporation (NASDAQ: UMBF), announced that Robert Faver has been promoted to president of UMB’s Arizona region. In this role, he is responsible for leading the UMB commercial banking team in Arizona, building long-term client relationships and targeting new business relationships in the community.

Faver brings to this position 19 years of experience in the financial services industry. Prior to this position, he was senior vice president and chief credit officer at UMB.  Before joining UMB, Faver was employed with M&I Bank in Phoenix, Ariz., where he served as vice president of commercial banking for 14 years.

“We are pleased to have someone of Robert’s caliber in this position,” said Jim Patterson, chairman and chief executive officer of UMB’s Arizona region. “He has been an outstanding performer and leader in our bank, and he brings invaluable experience, integrity and expertise to this expanded role.”

Faver earned a bachelor’s degree in finance and a master’s degree in business administration from Arizona State University. He is a member of the Greater Phoenix Chamber of Commerce.