It may look like a calculator, but it isn’t. It’s Visa’s CodeSure, a fraud-fighting technology that generates one-time passcodes for mutual authentication of online transactions. The back of CodeSure cards incorporate an alpha-numeric display, a microprocessor, a 12-button keypad and battery good for three years.

Here’s how it works:

• When shopping online or logging in to an online banking service, the cardholder activates the authentication process by pressing the “Verified by Visa” option button on the card’s keypad.
• When prompted, the consumer inputs their PIN into the keypad embedded in the card.
• A unique one-time-passcode appears on the card’s display, which is then used by the cardholder to authenticate a normal Verified by Visa transaction.

You can get a general sense for how it works in this short overview video:

VISA CodeSure – PHONE AUTHENTICATION

CodeSure cards can also be used to authenticate online banking sessions.

• When a cardholder accesses their online bank, they would be provided a dynamic numeric challenge code (a number) from the bank.
• The challenge code would be entered into the Visa CodeSure card by the cardholder, to confirm it is a request from their bank
• Only when the challenge code has been entered and correctly verified and approved is the cardholder then prompted to enter their PIN into the card
• This subsequently creates a unique one-time passcode for access to the online banking with both parties being mutually reassured.

The same steps would apply if conducting a transaction over the phone using Visa CodeSure. The following 1-minute video illustrates how CodeSure can be used for authentication in a customer service call:

VISA CODESURE – PHONE AUTHENTICATION

CodeSure technology can be incorporated into any Visa debit, credit, prepaid or commercial card.

Visa initially started developing its CodeSure technology in 2009. Visa, along with partner Emue Technologies, conducted extensive pilot trials with eight European banks and their cardholders. Following pilot programs in the UK, Italy, Israel, Turkey, Switzerland and Germany, Visa now says CodeSure is “fully available for commercial launch,” but it appears that launch will initially be limited to Europe. Presently, it isn’t clear when- or if CodeSure cards will be coming to North America.

Visa has approved use of CodeSure cards for the following purposes:

• PIN generated one-time-passcode for Verified by Visa payments at participating merchants globally – without changes to merchant software or cardholders having to register and remember passwords
• PIN-generated one-time passcode for online banking access
• PIN-generated one-time passcode for telephone banking services
• Transaction signing for online banking services, using specific elements such as Account Reference Number or amount of transaction
  Access to third-party services such as frequent flyer programs or corporate virtual private networks (VPN) for commercial card users.

Sandra Alzetta, Head of Innovation at Visa Europe, suggested that CodeSure cards could have other, more broad uses. For instance, companies might use them as portable password generators. “The solution goes beyond just online and remote shopping but also allows organizations to use the card in place of other online log-in systems to access, for example, corporate virtual private networks (VPN),” Alzetta said.

“The Visa CodeSure card offers banks a solution to fulfill all of their multi-channel banking requirements,” the company said in a press release. “The use of PIN-generated, one-time passcodes and mutual authentication technology, will provide banks with an attractive solution that enables security and convenience in the same device – a Visa payment card.”

BofA rolled out a similar service dubbed SafePass in 2008.

Thanks to CashCow.in, the #1 financial marketing blog in India, for the lead.

You might think that bank robberies would be on the climb during The Great Recession. But so far, that hasn’t been case. Using official FBI data, The Financial Brand looked at bank robbery statistics for the 47,242 robberies of U.S. financial institutions that occurred between 2003 and 2009. The study showed that even though Americans are reeling from one of the worst economic periods in the country’s history, bank robberies are actually on the decline.

In 2003 there were 7,442 robberies, dropping to 5,943 in 2009. That’s nearly 1,500 fewer robberies.

Every year, there are between 5,000 and 6,000 commercial banks robbed, compared with fewer than 500 credit union robberies. Commercial banks are the most common target, representing 88.8% of all robberies.

Demand notes are used in 56.7% of robberies. Robbers threaten to have a weapon 45% of the time. When a weapon is used, handguns are the most common. Slightly more than one in four robbers reveal their handgun. A mere 3% threaten to possess a bomb or other explosive device.

Robbers have not gotten much smarter over the years. Despite harsher penalties for using a firearm in the commission of a felony, the same percentage of robbers use guns today as they did seven years ago.

A total of just under $46 million in loot was taken by robbers in 2009. That’s an average haul of only $7,736.50.

Contrary to popular belief, the risk of robbery does not increase significantly on Fridays. A financial institution is no more than 4% more likely to be robbed on a Friday vs. any other weekday. The risk is only three times greater for a robbery on a Friday than on a Saturday. An alarming 7% of robberies occur on Saturdays, which is quite surprising considering the shorter branch hours and fewer number of branches that are open.

More than a quarter of all robberies occur between 9 a.m. and 11 a.m. Branches are at their highest risk of robbery in the first two hours after they open, with the level of risk diminishing slightly as the day progresses. The fewest daytime robberies occur in the last three hours of the day (between 3:00 p.m. and 6:00 p.m.) Only 7% of all robberies occur after hours (between 6 p.m. and 9 a.m.).

2009 was the first year the FBI started tracking takeovers as a method of robbery. In 2009, there were 306 takeovers, representing only 0.6% of all robberies.

The perpetrator of a robbery is predominantly male. In 2009, the ratio of male to female robbers was 16:1. 41% of perpetrators are white, 46% black, 8% Hispanic and 5% from other ethnicities.

Out of over 47,000 robberies in the last 7 years, only 9 employees and customers were killed.

Between 2003 and 2009, a total of 136 people have been killed in the course of financial institution robberies, 108 of them were perpetrators (79%). In those seven years, a total of 28 people other than perpetrators were killed, only 9 of which were employees or customers.

In 2009, all 21/21 of the people killed in the commission of a robbery were perpetrators. It’s quite likely that 2009 was the first year in U.S. history where no one other than perpetrators were killed during a robbery.

When The Financial Brand first ran a story on convicted-bank-robber-turned-branch-security-expert Troy Evans back in November, the article quickly became one of the most popular ever published here.

Now Troy is sharing his knowledge, advice and insights on branch security with readers of The Financial Brand in this 45-minute DVD training video, “Deterring & Responding to Robberies.”

This DVD+CD package includes advice and recommendations on branch security from many different perspectives including Evans, a long time security consultant and law enforcement officer, the CEO of a financial institution as well as a teller.

This will be a valuable training resource for your financial institution for years to come, arming your employees with practical knowledge and tools they can use. Give your employees the ongoing training they need to prevent robberies, aid the in the apprehension of thieves and help recover funds.

About Troy Evans: Troy is a professional speaker and author featured on Good Morning America, CNN, FOX and in The Washington Post, Chicago Tribune, Newsday, The New Yorker and more.  Troy has also written “From Desperation to Dedication: An Ex-Con’s Lessons on Turning Failure into Success.”

Training Program Details:

• Program contains a 45 minute CD/DVD with training materials
• Train your entire staff whenever, wherever
• Quick implementation with every new hire
• Small group settings and set regular re-training schedules
• Save expenses on guest speakers, renting meeting space and time spent out of the office
• Easily incorporate the materials to complement your existing in-house training program

Sections:

• Robbery Prevention: Reducing Your Risk
• Robbery Response: Protecting Customers, Members and Staff
• Robbery Response: Aiding Law Enforcement

Running Time: 45 minutes

Formats: A two-disc DVD and CD set

Price: Normally $399, but available to readers of The Financial Brand for only $299 through Amazon.com.

About the DVD, Joe Ellison, CEO/West Virginia Bankers Association, said, “Our bankers appreciated the practical tips on how to avoid and handle a bank robbery situation. Some of the suggestions were so simple to implement, yet never previously considered as robbery deterrents.”

[Note: If The Financial Brand covered another industry, we probably wouldn’t spend so much time talking about security. But robbers rob financial institutions because “that’s where the money is.” Security impacts the consumer's experience more so at financial institutions than just about anywhere else (except the airport). So The Financial Brand figured who else would be better to talk to about branch security than a convicted bank robber. Enjoy!]

When you’re in prison, you’ve got plenty of time to learn some things. For instance, guys convicted for armed robbery quickly learn that it’s much smarter to pass notes at banks than hold up a liquor store at gunpoint. Not only will you face a lighter sentence, you don’t have to worry about someone whipping out a shotgun and shooting back.

There’s a lot one can learn about robbing banks when in prison. And who better to learn from than Troy Evans?

“You’ll only get 30-36 months if you use a note,” he says.

Back in 1992, Troy Evans was sentenced to 13 years in the Federal Correctional Complex in Florence, Colorado. He was convicted of multiple bank robberies in three states over six months.

How many banks did he rob?

“More than the five I was convicted of,” Evans admits.

Evans biggest haul: $17,000, when he caught a teller in the middle of a count.

Evans only served seven years of his sentence before being released early, but earned two degrees with a 4.0 GPA during his time.

Since his release, Evans has dedicated himself to helping financial institutions minimize their risk of robbery. Capitalizing on his experiences as a bank robber and his reputation as an ex-con, Evans has forged a successful career as a noted speaker and branch security consultant who’s authored two books.

He has been featured on Good Morning America, CNN, FOX, The Washington Post, Chicago Tribune, Newsday, The New Yorker and more. Evans has even published a DVD/CD training tool for financial institutions, Deterring & Responding to Robberies, (which you can order here through Bankerstuff.com).

It may sound a little like the fox guarding the hen house, but Evans has achieved a truly impressive turnaround — something very similar to Frank Abagnale’s story.

A “hello” from staff can mean “goodbye robber”

For research, Evans met and interviewed some 300 convicted bank robbers, and he’s found a lot of common themes. For instance, what’s the one thing robbers are looking for when casing a branch?

“They are always looking for the path of least resistance,” he says.

Evans would always “case the joint,” as he puts it, before the robbery, sometimes 2-3 weeks in advance.

“I’d come in and ask to exchange a $10 bill for a roll of quarters,” he explains. While conducting the transaction, Evans would note how engaged staff were. Were employees paying attention? Did they say hello? Did someone extend a hand and welcome him?

“The last thing a robber wants is for someone to notice them. Someone to look them in the eyes,” he says.

“If anything makes a robber uncomfortable, they’ll move on to another location,” says Evans. “There’s just too many other financial institutions to choose from to bother with the ones who notice and acknowledge you.”

But did they even notice him? Evans apparently had no trouble finding detached and distant employees working at the dozen or so banks (and one credit union) he claims to have robbed.

“That’s why your frontline people are the most precious resource in robbery prevention,” Evans says. “And the #1 priority is to prevent your financial institution from being selected in the first place.”

Indeed what Evans is referring to are the principles behind Operation Safecatch. If staff say hello and acknowledge people as they enter your branches, not only will they be getting great service, staff will be minimizing the risk or robbery.

“There were a couple dozen banks I really wanted to rob,” Evans admits. “But they made their presence known.”

Keep it confidential

Evans says he got the idea to start robbing banks from a girl he was dating. She worked as a teller at a bank, telling him all the ins-and-outs of branch security — bait money, dye packs, policies of compliance, etc.

“I learned that all I had to do was ask,” Evans says. “Employees were told to comply, so if I told them, ‘Don’t give me any bait money,’ they didn’t.”

That’s why Evans recommends financial institutions have all their employees sign non-disclosure agreements.

“They shouldn’t ever discuss anything about security with anyone ever,” Evans cautions.

He recommends you make such a non-disclosure agreement binding beyond employment.

And in case you were wondering, no, Evans never robbed his girlfriend’s bank.

Be alert on Fridays

Evans says robbers believe financial institutions have more money on Fridays for people cashing their paychecks. True or not, it’s the reason he says banks are targeted more frequently on Fridays.

But Evans points out there can be other reasons too. For instance, if the robber has a drug problem (as Evans did), the fear of a weekend without a fix can drive them to find the nerve.

“Usually bank robberies are an act of desperation,” Evans observes. “It’s usually something related to drugs, gambling or debt — maybe foreclosure. They’d rather rob a bank than deal with an ugly weekend.”

Bullet Proof Glass

Evans says he never even considered robbing a branch that had bullet proof (or, more accurately, “bullet resistant”) glass. But, he wonders, “What’s the cost to the financial institution? Aren’t they supposed to be in the ‘people business?’ Isn’t it supposed to be all about ‘building relationships?’ How can you do that behind a two-inch thick glass barrier?”

Suspicious Activities Log

Evans says another way financial institutions can improve branch security is to keep a “Suspicious Activities Log” at each branch. Every teller and every employee is responsible for each other’s safety, so if they’re alert and pay attention, they might notice something that someone else needs to know about on another shift.

“You want employees to know what look for if someone’s been casing the branch,” Evans recommends.

If you do get robbed…

“Stay calm and pay attention,” Evans says. “It’s critical that you notice everything you can about the robber.”

“Look for identifying marks — scars, tattoos,” he recommends. “Pay attention to anything you can use to identify the robber later.”

For instance, Evans points out, “My right ear is larger than my left ear.”

“The more you notice, the better the chances are that the robber gets caught and convicted.”

Immediately following a robbery, Evans strongly urges all employees to sit down and write out every single detail they can recall. He encourages every financial institution to institute this recommendation as policy.

Evans’ Day of Reckoning

One night in 1992, Evans was staying at a hotel in Denver when the hotel’s manager gave him a call.

“This is the front desk,” the man said. “We’re all booked up, so we need you to come down and pay your next night in advance.”

After ignoring the first call, Evans was phoned again with a reminder to come down to the office to pay for his next night.

As Evans walked through the parking lot to the office, he saw a swarm of men armed with automatic weapons. They were coming for him.

How did he get caught? He was ratted out, as the expression goes, by another ex-girlfriend (not the one who was the teller at a bank, a different one). One day after robbing a bank, Evans came home expecting his girlfriend to be at work.

“I walked into the house stuffed with a pile of money, and she wanted to know where it came from,” he says.

He lied about it’s origin, but the girlfriend remained suspicious. Years later when she heard about a bank robbery, details made her recall the mysterious money incident and she immediately suspected Evans. She called the cops, and Evans was nabbed.

“It’s good that they caught me when they did,” Evans confesses. “I was strung out on drugs and in a very dark place. I had been thinking about committing suicide-by-police.”

Fortunately, Evans didn’t have his gun on him at the time of his arrest.

“I never had it loaded anyway,” Evans admits. “It was always just for show.”

How do Twitter users know they are interacting with a legitimate person or company? The truth is, they don’t. That is, unless that person is someone like Brittney Spears. Twitter has been offering “Verified Accounts” since June, but the company only seems interested in verifying accounts of celebrities — people like movie stars and sports icons.

The Financial Brand has warned of the dangers of phishing attacks on financial institutions’ Twitter accounts ever since January, when BofA first started offering customer service via Twitter.

The Financial Brand now tracks over 600 Twitter accounts for financial institutions, two of which were hacked last week. As more banks and credit unions push the envelope on Twitter, as Vantage Credit Union recently did with its “Tweet My Money” service, the stakes will only be going up.

The Financial Brand has made several attempts to establish dialogue with Twitter about the urgent need to verify accounts of financial institutions and the phishing risks they face. No one from the company has responded, nor even acknowledged that the risks and need are indeed real.

Twitter has apparently promised to offer verified accounts to businesses “by the end of the year,” but that promise was made back in August. Two months later and with only two months to go before year’s end, everyone is still waiting.

If you would like to see Twitter start verifying accounts for financial institutions, here are a few things you can do:

1. Participate in the poll below.
2. Leave a comment below.
3. Click on the “feedback form” link at the bottom of this page, which tells Twitter you’re interested in Verified Accounts.
4. Send a tweet to @ev (Evan Williams) and @biz (Biz Stone) saying you want Twitter to verify accounts for financial institutions, and please include a link to this article. Here’s a pre-shortened link to the story: http://bit.ly/X1Srh
5. Check out this article on what you can do to mitigate phishing attacks in the meantime.

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[Editor's Note: This article was submitted by Cliff Zugay, who owns Cliff’s Edge Marketing, a Chicago branding and ad agency that specializes in working with financial institutions.]

Before Leonardo DiCaprio captured the life of Frank Abagnale in the Hollywood blockbuster Catch Me if You Can, the FBI had to capture him first. Abagnale, the famous conman turned FBI fraud consultant, is now sharing his anti-fraud expertise in a series of videos on Nevada State Bank’s website.

Pictured from left to right: Frank Abignale, the conman turned fraud fighter, Leondardo Decaprio, who played Abignale in ‘Catch Me if You Can,’ and Tom Hanks, who played the FBI agent who busted Abignale. You should watch ‘Catch Me If You Can’ when you can. It’s a great movie.

Nevada State Bank hired Abagnale, who is frequently brought in to educate bank employees, to act as a broader spokesman for the bank’s fraud prevention program. There are nine videos total:

• Introductory message from Frank Abagnale
• What causes ID theft & fraud problems?
• How bad is the Identity Theft problem?
• Why every business should be on Positive Pay
• Why Frank uses credit cards to protect from fraud
• How to protect yourself from embezzlement
• How to spot counterfeit money
• What kind of shredder protects you from fraud
• How a $2 pen can protect you from check fraud

Abagnale’s fraud tips provide expertise and perspective only someone with his particular background and unique experiences can bring. He provides tips on several areas of fraud concern for both businesses and consumers, deliver insights that are inexpensive and easily implemented.

For instance, businesses that have an employee who has committed fraud, Abagnale suggests filing an IRS form 1099 for the amount of the fraud. Between the tax liability and the IRS hound dogs, it can be  enough for a perpetrator to negotiate restitution, even when criminal prosecution fails to return stolen funds.

In one of the more interesting topics, Frank walks through the simple theft of a cell phone bill payment, subsequent bleaching of the check’s written information, then how that information can be replaced — all with the original signature still on the check.He says that a $150 Mount Blanc can’t help you here. The only thing that works: The Uni-ball 207 which sells for about $2 at any drug store is the only pen with ink that can’t be washed out by any chemical.

Abagnale recommends using “Positive Pay” software to guard businesses against check fraud. The program provides a business’s bank with a list of the checks it writes, with payee, check number and amount listed. Since the bank knows what to expect, unless all three of those items on a submitted check match, the bank will not provide payment on that check.

Abagnale advocates using a credit card, not debit card for all daily transactions. It assures against purchase disputes, inappropriate use of your card, and can even boost the credit ratings of your children when they use a supplemental card off of your credit card during their college days.

He goes on to suggest that for home document destruction, the micro-cut shredder is the only style of document shredder one should consider. He came to that conclusion based on the time it took to reconstruct documents or credit cards shredded with a ribbon or diamond cut shredder. Abagnale’s FBI team was able to successfully restore such documents to recreate evidence in their Enron Worldcom, Tyco International Arthur Anderson investigations. Only the micro-cut model of home shredder shreds in a way that can’t be reconstructed.

Certainly, all banks are concerned with identity theft and fraud, and do what they can to protect their customers from such dangers. A program like this is a great example of how an institution can take an issue common to all banks and use it to position themselves as leaders in the industry.

Two months ago, The Financial Brand warned of the phishing risks financial institutions face on Twitter. Yesterday, at least two financial institutions had their official corporate Twitter accounts hacked, maybe more. While it seems no serious harm was done, it’s something all banks and credit unions need to be aware of. Here’s how it works.

If you’ve had any experience with Twitter lately, you may have seen one of these rather innocuous-looking messages show up in your private inbox:

Some are phrased differently, like this narcissistic temptation: “Hey is this you in this picture? http://twitter.pictures.url”

The only problem is that it’s a scam. The URL may look harmless, something like videos.twitter.secure-logins01.com (link inactive), but if you click on it, it takes you to a spoofed phishing site that looks identical to a real Twitter login screen. At this point, unsuspecting users who enter their account name and password have just handed their information over to hackers, who quickly hijack the account.

Which is precisely what happened to Hawthorne Credit Union and Brewer FCU yesterday. Some hacker started following them on Twitter a while ago. The unsuspecting credit unions repaid the courtesy by following them back. Wait a little while…then one day, a message from someone like jimbo_philly53 shows up in the credit union’s private inbox with a link.

“What’s this?” the person staffing the financial institution’s Twitter account wonders. They click on the link and assume they need to login to Twitter…to see the bait that the hacker has dangled.

Whammy! Account hijacked.

Make that two accounts hijacked.

Reality Check: For a certain period of time, hackers controlled the Twitter accounts of at least two credit unions. Remember, these are official, corporate communications channels.

If the hackers knew what they had, they wouldn’t have squandered their opportunities pushing $300-a-day, work-at-home schemes, as they did with the hijacked Brewer FCU account:

If these guys knew they were in control of official credit union Twitter accounts, they would have sent this kind of private message to all the followers of Hawthorne and Brewer credit unions:

Fortunately for both credit unions, these hackers were merely interested in perpetuating their own scams.

Hawthorne issued the following apology:

But it could have turned out much worse. Remember, these two credit unions were only caught in a wide hacker dragnet. Someday very soon, financial institutions’ Twitter accounts will come under direct assault by hackers deliberately looking to defraud consumers.

Key Question: What would have happened if some sweet, unsuspecting person coughed up their financial details to these hackers, who then cleaned out their accounts and stole their identity? How would consumers and financial institutions feel about using Twitter if/when that story breaks?

Bottom Line:

• If you don’t think this is a problem for your financial institution because you aren’t on Twitter today, think again. Someone else could be on Twitter right now, building followers using your brand name. Then...whammy!
• Never enter your account information at any website without verifying that the URL displayed in your browser window is legitimate. Make sure anyone staffing your social media accounts is careful about this too.

A print ad obscures all the text with asterisks to highlight the banks’ encryption capabilities.

“We found we didn’t have a brand. People were generally confused about what it is we offer.”
– John Ikard, CEO/President

1st Bank in Denver is rolling out a new ad campaign this month with an emphasis on online security. The creative campaign, targeting younger consumers, includes television, print, outdoor and web ads on sites like Yahoo, Ask.com, and MySpace.

In an interview with Marketing Daily, Brian Jensen/VP, said, “We think when other banks are pulling back, we have a chance to stand out.”

“When is there a better time, when you’re a strong viable financial institution, a community bank, to differentiate yourself form the competition than today, when times are difficult?” said John Ikard, the CEO/President of FirstBank.

The bank has a link off its website to a “Stability, Strength & Safety” page with all the right messages. It’s a smart move.

The Denver-based bank has 11 branches and 29 ATMs.

Agency: TDA Advertising & Design in Boulder, Colorado.

Outdoor ads depict $20 dollar bills with the presidential images obscured.

This non-traditional outdoor ad is clever and creative.

Posters speak to a younger audience’s lack of financial knowledge and sophistication.
“We’ll help you understand your money.”

“Bunnies”
In this spot, a man lays in an imaginary field that smells of fresh-baked cookies and is full of bunnies. It’s a metaphor for the bank’s online banking experience.

“Shirtless”
Some banker rips the shirt off a guy’s back, then smacks the coffee out of his hands.

You can see a couple more TV spots in the series here.

The would-be thief in this FBI image is a suspect in several bank robberies.

The employees working in a Seattle branch of First Mutual Bank recognized the man immediately. They’d seen his photo on a flier from the FBI and knew he was a suspect in previous bank robberies.

Instead of waiting for the man to rob them, the bank’s employees snapped to action. But they didn’t trigger any alarms, or call the police and run to the vault hugging each other.

“If a person is a legitimate customer, they will experience superior service. If their intention, however, is to rob the bank, they will experience paranoia, anxiety and a desire to escape.”
– FBI Special Agent Larry Carr

They just started a conversation with the man by greeting him and saying hello.

The man left the branch without any money — and without incident.

You might think this is a silly way to thwart a would-be robber, but it works.

Twice in a row, as a matter of fact.

After the robber left First Mutual, a bank employee called a nearby U.S. Bank to give them a heads-up: the man might be coming their way next.

Sure enough, the guy walked into the U.S. Bank branch, but to his dismay, he confronted the same sort of friendly, personal service he found at the First Mutual location. So he left, empty-handed again.

Key Insight: Robbers don’t like good customer service. A personal touch coupled with questions about opening a checking account annoys robbers. Why? Because they would prefer to remain fully anonymous and unseen. And because good service doesn’t fit the BRANCH EXPERIENCE they usually encounter. In a sense, good, personal service is so uncommon that it surprises robbers, catching them off guard.

As FBI Special Agent Larry Carr puts it, “If a person is a legitimate customer, they will experience superior service. If their intention, however, is to rob the bank, they will experience paranoia, anxiety and a desire to escape.”

Carr worked with EHS Design, the financial industry’s leading architectural firm, to develop a complete strategy for secure BRANCH DESIGN, something they call SAFECATCH. NPR even did a piece about it last year.

Robbers will often “case the joint” before robbing it. If they walk in and are confronted with attentive staff who seem to be “on their game,” they’ll move on to softer targets. Remember: They’re after easy money.

Reality Check: You should be providing great service to everyone who walks through your branch door…no matter what — people with purple mohawks, 14-year olds, even guys with sunglasses and hoodies. If not because you want more business, then at least for the safety of your employees.

Bottom Line: Banks, 2. Robber, 0.

You don’t need to turn your branches into medieval fortresses to prevent robberies. A branch built like Fort Knox undermines your ability to ability to provide warm, friendly personal service.

Who knows, a greeter might be a more effective method of preventing robberies than having an armed security guard. One thing is for certain: greeting people with a friendly handshake, a genuine smile and a warm hello definitely helps create a positive brand image — especially among your law-abiding branch customers.

If you want more information about SAFECATCH, check out this brochure (PDF) or contact EHS Design.

The customers have spoken: ‘WaterStone’ it is.

Back in February, Wauwatosa Savings invited its customers to help pick a new name for the bank. Customers had the until the end of the month to choose between three semi-finalists provided by the bank’s management: ‘Granite Bank,’ ‘WaterStone Bank’ and ‘Security First Bank.’

(Previous coverage from The Financial Brand, including an explanation of why the bank changed names, here).

Linguistically speaking, the WaterStone name is strong. The “water” aspect of the name connotes “flowing abundance” and themes of nature. “Stone” suggests strength and stability. These are very positive associations in the financial services sector.

Combining the words “water” and “stone” into one word is cool, but the capital “S” in “stone” is a bit gimmicky. No biggie though. Everyone has to do what they need to differentiate. Right?

Especially when there’s three other ‘Waterstones’ already registered with the U.S. Patent & Trademark Office in Class 36 (for financial services). One company is in capital management, one in consulting, and a third providing benefit administration:

Key Questions:

• Will any of the existing ‘Waterstones’ with federally protected trademarks challenge the new Waterstone?
• The ‘WaterStone’ in Wauwatosa hasn’t applied for trademark protection yet, but if it does, will it trigger some sort of alarm with the other ‘Waterstones’ already on record with the USPTO?
• How would the USPTO and courts respond to a trademark challenge, especially considering the USPTO has already granted three separate registered trademarks to companies in the same industry?

Bottom Line: All risks aside, the selection of the ‘WaterStone’ name makes sense for Wauwatosa.

First of all, Wauwatosa Savings recently acquired a mortgage company with the Waterstone name, so they have some history (and legitimate claim) connected to the name.

Second, the customers made the right choice (I’m assuming the vote was fair, and the results can be inspected by customers). The other two name options were troublesome. ‘Security First’ is just plain bland, and ‘Granite’ does the same things as ‘WaterStone’ but without the “water” aspect of the name. ‘Granite’ also carries significant trademark risks.

At its website, the bank had yet to announce the winners of their naming contest. But standby, there’s a fair chance that they probably will.

Along with the new WaterStone name comes the tagline “It’s all here for you,” supporting the bank’s rebranding as a full service financial service provider in its communities.

The bank will officially become WaterStone sometime in mid-2008. According to the bank, they will most likely be changing the name of their holding company too.

Original Article by The Financial Brand here.

[UPDATE HERE]

Wauwatosa Bank is inviting its customers to visit branches and vote for their favorite name from three options: ‘Granite Bank,’ ‘WaterStone Bank’ or ‘Security First Bank.’ People also can submit other names by writing suggestions on their ballots.

Each ballot cast is an entry into a drawing with prizes worth a total of $3,000. Four separate winners will be awarded a 46” flat screen TV, a laptop, an interactive video game system package, and a $500 gift card.

On its website, the bank said, “We want you to be a part of our history. We invite you to share your opinion on a new name for the bank. To choose your favorite name, all you need to do is visit any of our branch locations and fill out a ballot.”

Customers can vote at any one of the bank’s eight branches before February 29.

“‘Wauwatosa’ does not define us, nor does it help us gain acceptance in a new community.”

Two years ago, Wauwatosa Savings was a traditional savings and loan institution, focused primarily on acquiring CDs and providing mortgages. Today, the bank is a full service financial provider. In addition, the bank added three branch locations since 2006.

The bank may expand further in its home state of Wisconsin and beyond.

Doug Gordon, president and CEO, said, “A name change is necessary to better reflect what we are now and what we plan to be in the future.”

This article says Wauwatosa Savings will join a trend among Wisconsin community banks eliminating geographic references from their names as they grow outside their original markets. They join Wauwatosa Credit Union who changed names just a few weeks ago to ‘Focus.’

All three options proposed by Wauwatosa Bank involve some degree of trademark risk. ‘Granite Bank’ and ‘Waterstone’ are both registered trademarks on file with the U.S. Patent & Trademark Office. Specifically, they are granted federal protection within International Class 036 which covers financial services.

The biggest problem with ‘Security First’ is the name’s ubiquity. There are literally dozens of ‘Security First’ banks.

According to this press release from the bank, Wauwatosa Savings acquired the ‘Waterstone’ name when it bought a local mortage company about a year ago.

Key Questions:

• How is the customer vote being audited for fairness? What if a customer objects to the vote’s outcome (because they don’t approve of the winning name)?
• Will the vote actually determine the winning name? Or will customer votes be used to gauge “customer preference?”
• Depending on which name prevails, will it be challenged legally.

Bottom Line: From a trademark perspective, ‘Waterstone’ seems to have the least risk. And the bank already has an existing relationship with the ‘WaterStone’ name. Nevertheless, the familiar sound of ‘Security First’ could prevail in a vote among customers. The trademark for ‘Granite Bank’ is locked up, so that would be a very risky move.

Tip of the Hat: To the PR firm, who got three…different…stories about the naming contest perfectly timed for release on the same day.

Update: Here.