Advanced Fraud Solutions (AFS), a leader in deposit fraud detection software, today announced a new report, Guide to Securing ITMs from Fraudulent Deposits, on interactive teller machine (ITM) deposit security. The report details the benefits of ITMs for both financial institutions and consumers; the risks and targeting of ITMs by fraudulent actors; as well as best practices for ITM deposit security.
“Consumer adoption and fraud typically coincide,” said Lawrence Reaves, President and CEO of AFS. “As new ITMs roll out across the U.S., it should come as no surprise that they will also be targeted by fraudsters. To counter potential fraud losses, Advanced Fraud Solutions’ white paper details what proactive steps banks and credit unions should take to protect themselves against ITM-initiated deposit fraud.”
Interactive Teller Machines Adds Automation and Cost Savings to Omnichannel Fraud Prevention Approach
To provide customers with a more on-demand banking experience, as well as expand a financial institution’s geographic footprint and hours of service, ITMs have been heralded as a way to couple technology and automation with a frontline-like interaction. Much of the benefit of ITMs is related to cost. An in-person teller interaction represents roughly $4.50 in costs to the financial institution. The cost of the average ITM interaction, however, is only 50 to 70 cents. [1]
Fraud, however, will be quick to test and take advantage of any potential weakness. Particularly low-technology, easy to execute forms of fraud like check fraud, which continues to be a pervasive issue. In fact, losses related to check fraud have increased as of late, according to the American Bankers Association. Check fraud losses cost U.S. financial institutions $1.3 billion in 2018. [2]
To prevent losses, AFS recommends an omnichannel, real-time and data-driven approach. In addition, AFS suggests banks and credit unions consider TrueChecks®, the industry’s leading check fraud database and comprehensive check fraud prevention solution.
TrueChecks is easy to integrate into any deposit channel, including ITMs. It delivers real-time responses to counterfeit, NSF, Closed Account, Duplicate, and other fraudulent items. With TrueChecks, financial institutions can take a proactive approach to fraud, ensuring a smooth ITM rollout.
Ted Kirk is VP, Strategic Partnerships at Advanced Fraud Solutions in High Point, NC | advancedfraudsolutions.com.
— via Payments Journal
