Fighting Fraud: New Insights from a Former FBI AgentCharles Schwab's Langley Decribes Why Collaboration with Law Enforcement Is Critical
As criminals become more savvy about circumventing financial institution's fraud prevention controls, fraud-fighting collaboration among institutions and law enforcement officials is becoming more important than ever, says Clyde Langley, a former FBI special agent. Langley, who now serves as vice president and head of fraud prevention and investigations for brokerage and banking firm Charles Schwab, will be a featured presenter at Information Security Media Group's Sept. 15 Fraud Summit San Francisco.
"What we commonly see is that criminals learn our techniques for fraud prevention, our controls for fraud prevention, and they utilize those," Langley says in an interview with ISMG. "Not only that, obviously they're going to other financial institutions trying to create the same type of fraud. So I think it's very critical that the financial institutions work together to try to get rid of that fraud, to mitigate that fraud risk, and the only way of really doing that is by working with law enforcement."
Langley says banks and credit unions can share information about emerging threat through the Financial Services Information Sharing and Analysis Center and other channels. But only law enforcement has the ability to connect all of the dots to trace fraud events back to a fraudster or crime ring, he stresses.
Financial institutions need to work with law enforcement officials who can "identify whether that criminal is the same person hitting multiple institutions or even hitting multiple accounts," he notes.
Although in some cases, such as insider fraud, banking institutions want to initially handle investigations on their own, all cases eventually must also involve law enforcement authorities, Langley says.
During this interview, Langley also discusses:
- Why most institutions get legal counsel involved at the front end of a fraud event;
- Some of the regulatory expectations banking institutions are required to fulfill in the wake of a fraud incident; and
- Why former FBI agents often take on new roles in fraud departments at banks;
To learn more about next week's San Francisco summit, check out the summit registration page.
Langley leads Charles Schwab Corp.'s Corporate Fraud Prevention & Investigations Group, which is responsible for external and internal fraud investigations, including the fraud risk assessment team, the cybercrime investigations team, Visa/check loss investigations team and the external and internal fraud investigations teams. He also oversees the company's anti-bribery and ID Theft Red Flag programs. Before joining Schwab in 2014, Langley spent 22 years as an FBI special agent in executive management and investigation roles. At the FBI, he spent more than 15 years supervising and investigating financial and cybercrimes, including eight years managing financial crime investigations and four years working in Kazakhstan and Belgium.