Credit Unions Cut Check Fraud Nearly in Half with Omnichannel Partnership Solution

New Case Study Explores the Benefits of Technology Partnership Between Providers, AFS and Alogent

Advanced Fraud Solutions (AFS), a leader in fraud prevention services, and Alogent, an end-to-end payment processing solutions provider, today announced the release of a joint case study, Fighting Check Fraud in Real-Time. The case study explores how AFS's TrueChecks® in conjunction with Alogent's ImagePoint Hub significantly reduced check fraud losses at two financial institutions, bolstering their omnichannel protection, simplifying check decisioning and lowering fraud losses to members and the FIs.

Click here to view the complete case study

Check fraud is one of the most common forms of fraud, accounting for 35% of industry fraud losses1. And with the growing popularity of new deposit channels – particularly mobile deposit – fraudulent deposits to exploit paper checks are on the rise again. To combat check fraud across all deposit channels, AFS and Alogent formed a strategic partnership to provide a real-time, omnichannel check fraud solution for financial institutions. As a result, two of the first credit unions to implement the solution experienced a significant reduction in check fraud losses as well as improved member experience associated with better check decisioning.

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"Check fraud is a persistent threat to banks and credit unions. By partnering with Alogent, we were able to create significant fraud savings for our mutual customers, providing them with an integrated, real-time check fraud solution that addresses both in-branch and remote deposit capture points.”

— Ted Kirk, Director of Industry Partnerships, AFS

"When check fraud hits a credit union, it's the members who are ultimately defrauded," said Carol Nault, Executive Vice President and Chief Operating Officer, Summit Credit Union (Greensboro, NC), who participated in the case study. "After implementing TrueChecks®, the rate of checks returned due to NSF decreased nearly 50%. In our experience, adding additional fraud protection tools and applying the same standards across capture points can significantly reduce check fraud losses." 

"Check fraud is a persistent threat to banks and credit unions," said Ted Kirk, Director of Industry Partnerships, Advanced Fraud Solution. "By partnering with Alogent, we were able to create significant fraud savings for our mutual customers, providing them with an integrated, real-time check fraud solution that addresses both in-branch and remote deposit capture points."

The joint solution, which draws on the TrueChecks® database containing over ten-years of data from contributing institutions, allows banks and credit unions to mitigate fraud in real-time, leveraging: 

  • A vast fraud database compromised of data from a large network of financial institutions, item processors and optional third-party sources

  • Real-time responses on counterfeit, NSF, Closed Account, Duplicate and other fraudulent items

  • Easy API-based integration into existing and familiar workflows

  • Decisioning with Reg CC-recommended action and associated risk

About AFS

Advanced Fraud Solutions was founded in 2007 with the simple mission to help financial institutions and businesses prevent fraud by utilizing our comprehensive private cloud-based software solutions at the front line and in the back office. Every day, our innovative fraud prevention tools help banks, credit unions, and merchants of all sizes eliminate losses and safeguard their financial assets, providing the level of protection that today's customers demand. At Advanced Fraud Solutions, we know the best way to fight fraud is to prevent it. Learn more at www.advancedfraudsolutions.com.

  1. American Bankers Association, "ABA Benchmarking and Survey Research: 2017 Deposit Account Fraud Survey Report" (January 2018)

via PRNewswire