MIAMI – APRIL 16, 2013

1. Various of people using smartphones

AP TELEVISION – AP CLIENTS ONLY

MIAMI – APRIL 19, 2013

2. Wide Exterior of Federal Reserve Bank of Atlanta, Miami Branch

3. Push-in graphic of Fed Reserve report

AP TELEVISION – AP CLIENTS ONLY

CULVER CITY, CALIF. – March 25, 2013

4. Woman walking on street with phone

5. Various of different smartphones

AP TELEVISION – AP CLIENTS ONLY

MIAMI – APRIL 19, 2013

6. SOUNDBITE: (English) Marie Gooding, First Vice President, Federal Reserve Bank of Atlanta (transcript below)

AP TELEVISION – AP CLIENTS ONLY

MIAMI – APRIL 16, 2013

7. Establishing shot of Andrew Carter

8. SOUNDBITE (ENGLISH): Andrew Carter, attorney who lost smartphone at airport and was hacked (transcript below)

9. Various of Andrew carter

AP TELEVISION – AP CLIENTS ONLY

MIAMI – APRIL 19, 2013

10. Push-in medium of Federal Reserve sign

AP TELEVISION – AP CLIENTS ONLY

CULVER CITY, CALIF. – March 25, 2013

11. Various of smartphones and users

12. Wide establishing shot of Vikram Thakur, Symantec

13. SOUNDBITE :(English) Vikram Thakur, Principal Security Response Manager, Symantec Corp. (transcript below)

VALIDITY SENSORS INC.

UNDATED

14. Medium pan of laptop screen showing new sensor components

15. Various of man using prototype fingerprint scanner built into phone

AP TELEVISION – AP CLIENTS ONLY

CULVER CITY, CALIF. – March 25, 2013

15. Close-up of phone being held

16. Medium of two phones on display

17. Various of phones being demonstrated

–END–

VOICE-OVER SCRIPT:

SMARTPHONES CAN DO JUST ABOUT ANYTHING THESE DAYS —

BUT THE FEDERAL RESERVE IS WARNING THEIR EXPLOSIVE GROWTH IS BECOMING A DOORWAY TO BANK FRAUD.

ONE STUDY FOUND ATTACKS ON BANK ACCOUNTS COST 4.9 BILLION LAST YEAR, A JUMP OF 69 PERCENT IN JUST ONE YEAR, WITH SMARTPHONES BEING THE NEW TARGET OF CHOICE FOR FRAUDSTERS.

SOUNDBITE: Marie Gooding /First VP, Atlanta Federal Reserve:

“We have some very bad characters who would like to take our money, take our identification, and run away with it”

ATTORNEY ANDREW CARTER LEARNED THE HARD WAY. HE LOST HIS PHONE AT THE AIRPORT. HE HAD A MOBILE BANKING APP ON HIS PHONE — BUT DIDN’T KEEP HIS PHONE LOCKED

SOUNDBITE: Andrew Carter, attorney

“I used to have a lock on it, but it was annoying me, so I took it off. That was definitely a big mistake”

ANDREW CARTER GOT HIS STOLEN $2,000 BACK. BUT HIS EXPERIENCE IS EXACTLY WHAT THE FED IS CONCERNED ABOUT — THAT PEOPLE DON’T REALIZE THE RISKS

THE FED’S ONLINE BANKING SYSTEM HAS STRICT AUTHENTICATION STANDARDS. BUT STUDIES SHOW CONSUMERS ARE MORE CARELESS WITH PHONES THAN THEY ARE WITH HOME COMPUTERS – GIVING FRAUDSTERS AN INCENTIVE:

SOUNDBITE: Vikram Thakur, Principal Security Response Manager, Symantec.

“These rogue applications can sort of give the end attackers complete control of your phone, whether it’s SMS’s, phone calls, monitoring for messages as well as stealing any of your contact information.”

NEW TECHNOLOGY LIKE FINGERPRINT SCANNERS CAN HELP. AND THE FED IS WORKING WITH INDUSTRY TO IMPROVE SECURITY. BUT IT WARNS THAT SO FAR, MANY CONSUMERS AND BUSINESSES ARE BEING REACTIVE — INSTEAD OF PROACTIVE — ABOUT SMARTPHONE CYBERCRIME.

SIGOUT – TONY WINTON /ASSOCIATED PRESS