EMV Adoption Causes Check Fraud To Spike - Credit Union Journal

This weekend the Credit Union Journal dug into the root causes of the recent rise in check fraud:

While paper checks use continues to decline due to mobile and online banking, a new report finds that checks are still the payment method most susceptible to fraud, and that check fraud accounts for the largest dollar amount of financial loss annually.
Among reasons for the check fraud uptick is the industry's adoption of EMV security standards, which have increased firewalls on mobile and online transactions, explained Lawrence Reaves CEO for the Kernersville, NC based Advanced Fraud Solutions (AFS). As a result, thieves are reverting back to check scams.
"Credit unions should utilize a check-fraud solution that leverages an external database that has industry contributed data concerning fraudulent checks," said Reaves. "Almost without exception, the same bad checks are showing up at the credit union's peers' locations."
The study, "2015 AFP Payments Fraud and Control Survey," was sponsored by J.P. Morgan in conjunction with Association for Financial Professionals, found that the most targeted methods of fraud were checks (77%), credit/debit cards (34%) and wire transfers (27%).

Read the full article here: Check Fraud Spikes Due To EMV Standards

OFAC Regulators Set To Tighten Enforcement, Increase Penalties

Advanced Fraud Solutions released a white paper on OFAC for banks and credit unions to understand new changes in asset control regulations.

Kernersville, NC: Today Advanced Fraud Solutions released a new white paper that helps financial intuitions navigate the regulations and penalties enforced by the Office of Foreign Assets Control. Titled, “Using OFAC Data to Safeguard Against Fraud & Terrorism” the paper leverages AFS’s leading position in the industry to provide guidance on OFAC’s long history, and recent changes.

“As terrorism and organized crime becomes more modular and sophisticated, we are seeing OFAC regulators increase their scrutiny of financial institutions of all sizes,” says AFS President, Lawrence Reaves. “We believe the hefty fines OFAC has become known for will make its way down to smaller banks and credit unions who may unknowingly be in non-compliance with current regulations”.

Advanced Fraud Solutions’ unique position as the premiere fraud prevention software provider for credit unions and banks enabled the company to learn about OFAC’s stiffening audits of financial institutions. In this current political and law enforcement climate regulators will no longer tolerate ignorance on behalf of organizations that are being used as tools for terrorist factions and organized crime.  

The white paper can be requested here. The paper includes:

•    OFAC history, from the Korean War to its present day role in the fight against terrorism
•    The future of OFAC and its expanding review of mid-size financial institutions
•    Details regarding Advanced Fraud Solutions’ powerful OFAC compliance tool

About AFS

Advanced Fraud Solutions delivers loss prevention tools for the front lines of financial institutions, providing same-day batch solution for identification of high-risk transactions that include frontline, remote, ATM, or additional channels. For more information, please visit AdvancedFraudSolutions.com.


Hashim Warren
Advanced Fraud Solutions
(866) 663-4709


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