behind it, machinery, specialist knowhow, a distribution system. Besides, there are other signs pointing the same way." "Such as?"
"As you know," Wainwright said, "I keep in touch with law agencies. Recently there's been a big increase through the whole Midwest in counterfeit currency, travelers checks, credit cards other cards as well as our own. There's also a lot more traffic than usual in stolen and counterfeit securities, stolen and forged checks."
"And you believe all this, and our Keycharge fraud losses, are linked?" "Let's say it's possible." "What's Security doing?"
"As much as we can. Every lost or missing Keycharge card that turns fraudulent is being checked out and, where possible, tracked down. Recovered cards and fraud prosecutions have increased every month this year; you've had the figures in reports. But something like this needs a full-scale investigation and I don't have either staff or budget to handle it."
Alex Vandervoort smiled ruefully. "I thought we'd get around to budget."
He surmised what was coming next. He knew of the problems under which Nolan Wainwright labored.
Wainwright, as a vice-president of First Mercantile American, was in charge of all security matters in the Headquarters Tower and at branches. lithe credit-card security division was only one of his responsibilities. In recent years the status of Security within the bank had been advanced, its operating funds increased, though the amount of money allotted was still inadequate. Everyone in management knew it. Yet because Security was a nonrevenue produ cing function, its. position on the priority list for additional funds was low.
"You've g ot proposals and figures, I presume. You always have, Nolan."
Wainwright produced a manila folder which he had brought with him. '1t's all there. The most urgent need is two more full-time investigators for the credit-card division. I'm also asking for funds for an undercover agent whose assignment would be to locate the source of these counterfeit cards, also to find out where the leakage is occurring inside the bank."
Vandervoort looked surprised. "You think you can get someone!"
This time Wainwright smiled. "Well, you don't begin by advertising in 'help wanted' columns. But I'm willing to try."
"I'll look carefully at what you've suggested and do my best. That's all I can promise. May I keep these cards?" The security chief nodded. "Anything else on your mind?"
"Only this: I don't think anyone around here, including you, Alex, is taking this whole credit card fraud problem seriously. Okay, so we congratulate ourselves that we've held losses down to three quarters of one percent of total business, but business has grown enormously while the percentage has stayed steady, even increased. As I understand it, Keycharge billings next year are expected to be three billion dollars." "That's what we're hoping for."
"Then at the same percentage fraud losses could be more than twenty-two million."
Vandervoort said drily, "We prefer to speak of it in percentages. That way it doesn't sound as much, and the directors don't get alarmed." "That's pretty cynical." "Yes, I suppose it is."
And yet, Alex reasoned, it was an attitude which banks all banks took. They played down, deliberately, credit - card crime, accepting such losses as a cost of doing business. If any other bank department showed a seven and-a-half million dollar loss in a single year, all hell would erupt before the board. But where credit cards were concerned' "three quarters of one percent" for criminality was accepted or conveniently ignored. The alternative an all-out fight against crime would be more costly by far. It could be said, of course, that the bankers' attitude was indefensible because in the end it was customers credit-card holders who paid for fraud through increased charges. But, from a financial point of view, the attitude made business sense.
"There are times," Alex said, "when the credit-card system sticks in my
"As you know," Wainwright said, "I keep in touch with law agencies. Recently there's been a big increase through the whole Midwest in counterfeit currency, travelers checks, credit cards other cards as well as our own. There's also a lot more traffic than usual in stolen and counterfeit securities, stolen and forged checks."
"And you believe all this, and our Keycharge fraud losses, are linked?" "Let's say it's possible." "What's Security doing?"
"As much as we can. Every lost or missing Keycharge card that turns fraudulent is being checked out and, where possible, tracked down. Recovered cards and fraud prosecutions have increased every month this year; you've had the figures in reports. But something like this needs a full-scale investigation and I don't have either staff or budget to handle it."
Alex Vandervoort smiled ruefully. "I thought we'd get around to budget."
He surmised what was coming next. He knew of the problems under which Nolan Wainwright labored.
Wainwright, as a vice-president of First Mercantile American, was in charge of all security matters in the Headquarters Tower and at branches. lithe credit-card security division was only one of his responsibilities. In recent years the status of Security within the bank had been advanced, its operating funds increased, though the amount of money allotted was still inadequate. Everyone in management knew it. Yet because Security was a nonrevenue produ cing function, its. position on the priority list for additional funds was low.
"You've g ot proposals and figures, I presume. You always have, Nolan."
Wainwright produced a manila folder which he had brought with him. '1t's all there. The most urgent need is two more full-time investigators for the credit-card division. I'm also asking for funds for an undercover agent whose assignment would be to locate the source of these counterfeit cards, also to find out where the leakage is occurring inside the bank."
Vandervoort looked surprised. "You think you can get someone!"
This time Wainwright smiled. "Well, you don't begin by advertising in 'help wanted' columns. But I'm willing to try."
"I'll look carefully at what you've suggested and do my best. That's all I can promise. May I keep these cards?" The security chief nodded. "Anything else on your mind?"
"Only this: I don't think anyone around here, including you, Alex, is taking this whole credit card fraud problem seriously. Okay, so we congratulate ourselves that we've held losses down to three quarters of one percent of total business, but business has grown enormously while the percentage has stayed steady, even increased. As I understand it, Keycharge billings next year are expected to be three billion dollars." "That's what we're hoping for."
"Then at the same percentage fraud losses could be more than twenty-two million."
Vandervoort said drily, "We prefer to speak of it in percentages. That way it doesn't sound as much, and the directors don't get alarmed." "That's pretty cynical." "Yes, I suppose it is."
And yet, Alex reasoned, it was an attitude which banks all banks took. They played down, deliberately, credit - card crime, accepting such losses as a cost of doing business. If any other bank department showed a seven and-a-half million dollar loss in a single year, all hell would erupt before the board. But where credit cards were concerned' "three quarters of one percent" for criminality was accepted or conveniently ignored. The alternative an all-out fight against crime would be more costly by far. It could be said, of course, that the bankers' attitude was indefensible because in the end it was customers credit-card holders who paid for fraud through increased charges. But, from a financial point of view, the attitude made business sense.
"There are times," Alex said, "when the credit-card system sticks in my
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