How Banks and Credit Unions Can Build a Culture to Fight Fraud

Among all the things we train our customers on here at AFS, teaching them the tips and tricks of catching deposit fraud is one of the most important. Aside from just this fundamental training, though, there is a cultural element that can be encouraged at banks and credit unions that makes the ‘game’ of spotting fraudulent deposits fun and rewarding for staff. The trick is knowing how to position the benefits to encourage strong, consistent participation.

The trick is knowing how to position the benefits to encourage strong, consistent participation.

While many financial institutions offer compensation and bonuses based on performance, few organizations position those around stopping fraud (even though it directly saves the FI money!). This simple twist in the way those performance bonuses are propositioned can be a great way to motivate and refocus staff on becoming fraud fighting experts. With extra compensation on the line, tellers will go a step further to not only run each item against TrueChecks® but also decision the items accurately based on the system’s recommendation. Additionally, our most successful customers have set up incentive packages for those staff members who contribute new alerts to the system as well.

One big motivator in this cultural shift for teams can be showing them how much value stopping fraudulent deposits has for your customers and/or members. Your staff interacts with these folks every day, and they value them and want them to continue doing business with your institution. It’s not only about their job security, but it’s also about their pride in what they do and the services they offer. Reinforcing the cultural norm that stopping fraud helps the customers/members and the bank or credit union while lining their pockets with a little cut of those saved fraudulent losses in the form of bonuses, will go a long way in shoring up your financial institution’s fraud problem.

With any cultural shift, there will need to be training around this initiative, and promotion throughout the branches about the bonus structure’s benefits for the team or individuals that ‘catch the most fraud this quarter.’ Maybe they even get a party or awards ceremony for their efforts and hard work? Making the shift from just using the AFS solutions, to embracing them as a big part of the daily workflow can help your bank or credit union save a lot more in fraud losses. An engaged team member with a sharp eye on deposits will be your biggest ally and tool in the fight against deposit fraud losses. So, give it a try! Make that cultural shift to being a frontline fraud-fighting dream-team and see what happens.

— written by Advanced Fraud Solutions