Best Fraud Detection Solutions: The Complete Guide for FI Stakeholders
Deposit fraud is an ever-present threat, every year draining billions from unsuspecting account holders—and financial institutions. Your financial institution stands on the frontline, potentially next in line to bear the brunt of these losses. But it doesn’t have to be this way. In this guide, prepared by AFS, we’ve broken down the key insights you need to protect your assets—and those of your account holders’. Reading to learn more about the best deposit fraud prevention solutions available today for financial…
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The warning signs and growing threat of new account fraud
In the world of deposit fraud, new account fraud is a frequent flyer because without an established history it can be easier for new account holders to sneak through. Teaching your staff how to spot potentially fraudulent new accounts is a great way to get ahead of this popular scam. According to the 2015 Data Breach Fraud Impact Report published by industry analyst Javelin Strategy and Research, new account fraud was projected to increase from $5B in 2014 to $8B in 2018. Here are some tips to help your bank or credit union get out in front of this growing trend.
First, new account fraud typically occurs on an account within the first 90-days it is open, so this is the window to watch new accounts more closely for suspicious activity. Also, most fraudsters will wait for more than 30-days to make the first deposit or they will start with small deposits and withdrawals in the first month to make the account appear normal.
Watch Out for the Latest Treasury Check Fraud Tactics [Updated for 2024]
In the wake of the pandemic of 2020, the CARES Act represented a crucial financial lifeline for millions grappling with economic instability. However, this surge in government assistance also presented an unprecedented opportunity for fraudsters. Years later, the landscape of treasury check scams continues to evolve, leveraging the lingering effects of the pandemic. With the government’s ongoing and valuable efforts to support those in need, it’s become increasingly important for individuals and their financial institutions to defend against the sophisticated…
How Logix FCU Safeguards Members and Optimizes Operations with Advanced Fraud Solutions
Logix Federal Credit Union was first founded as Lockheed Aircraft Employees Federal Credit Union in 1937. During the Great Depression, 12 charter members founded the credit union, providing Lockheed employees access to credit at a time when traditional bank loans were scarce. The financial institution changed its name to Logix Federal Credit Union in 2012 and continues to be a pillar of financial stability and community support. Today, Logix is committed to making a difference through charitable donations, volunteerism, and…
Positive Pay for FIs and Businesses: Defend Against Deposit Fraud
In the battle against check and ACH fraud, a Positive Pay system stands as an indispensable line of defense for financial institutions. By validating checks against a pre-approved list, it preemptively blocks unauthorized transactions, protecting your account holders and mitigating potential losses. In this guide, we delve into the definition of Positive Pay. Read for insights for FI and cash management department leaders on how to leverage this often-overlooked fraud prevention tool. We know your aim is to safeguard account…
ACH Fraud Prevention for FIs: How to Keep Account Holders Safe and Prevent Losses
In today’s digital age, money isn’t just paper and coins; it’s ones and zeros flying across the Automated Clearing House (ACH) Network. If you’ve ever paid a bill or received a direct deposit, you’ve dipped your toes into this financial stream. But here’s the catch – where there’s digital money, there are digital criminals. With a few keystrokes and some cunning tactics, these fraudsters are targeting innocent individuals, siphoning funds right out of their checking accounts. Phishing emails and malware…
Communication Federal Credit Union Prevents Millions in Fraud Loss Thanks to Advanced Fraud Solutions
Communication Federal Credit Union (CFCU), originally Pioneer Bell Credit Union, was founded by employees of Southwestern Bell Telephone in downtown Oklahoma City in 1939. CFCU is a full-service credit union with approximately 270 employees and 22 branches in Oklahoma and Kansas, serving around 120,000 members.
CFCU has always prioritized fraud prevention and risk management, and Nathan Blais, Senior Vice President Risk Management, explained how they evaluated and chose Advanced Fraud Solutions (AFS) for their fraud mitigation needs.
The Alarming Rise of Check Washing Scams
Check-washing scams are experiencing a frightening resurgence. Across the country, fraudsters are stealing checks and altering them to steal large sums of money. The number of reported cases in 2022 reached 680,000, nearly double the previous year, according to the Financial Crimes Enforcement Network.
Combatting Fraud: The Crucial Role of Financial Institutions in Contributing Deposit Data to Anti-Fraud Databases
In this guide, we’ll explore the basics of using contribution data to enhance fraud prevention efforts. Specifically, we’ll cover the following: What is contribution data and why is it important for fraud prevention? Different types of contribution data, including consortium contributions How contribution data can be leveraged to improve fraud prevention solutions By the end of this guide, you’ll have a better understanding of the role that contribution data can play in fraud prevention and how you can take steps…
A Reflection on Fraud Trends in 2022
At AFS, we strive to not only help mitigate and prevent fraud losses at your institution with our fraud prevention software, but we also strive to educate and keep you up-to-date on important fraud trends. Technology continued to grow last year, which created more avenues for fraudsters to attack, and there is no limit to how far swindlers will go to steal information or money. Here is a breakdown of some of the fraud trends we saw last year.
What Can Banks Do To Protect Remote Deposit Capture As Mobile Banking Booms?
ore U.S. consumers than ever are swiping and tapping to check their bank account balance, to transfer money or deposit a check. The result has been a mobile banking boom. To keep up with demand, banks and credit unions have been fast to develop their own apps and mobile-friendly services, including enhancing ATMs with the latest check deposit imaging capabilities
Prosecuting Bad Checks | A Guide For Financial Institutions To Fight Back
Catching check fraud before it’s deposited is obviously the ideal scenario for banks and credit unions because it avoids the litigation and expense of prosecuting for fraud. Not to mention it avoids the fraud loss. However, when bad items do sneak through, there are some important things banks can do to fight back and prosecute repeat check fraud offenders. Here is what you need to know to act to prosecute fraud attempts at your financial institution.
Check fraud is a serious offense and comes with very real legal consequences which vary by state. Depending on the severity of the crime, the amount that was defrauded, and the number of instances of fraud the perpetrator completed, check fraud can be either a misdemeanor or a felony.
TrueWire Product Preview
Join Advanced Fraud Solutions (AFS) for a preview of its newest fraud prevention tool – TrueWire. TrueWire automates the validation of account status and ownership of the sender and receiver of a wire transfer. TrueWire was designed to safeguard wire transactions and streamline payment processing. With TrueWire, banks and credit unions can protect wire transactions from fraud or mistaken payments. On each transaction, TrueWire triangulates payment details with account status and ownership against a nationwide database, providing a recommended action…