Check fraud schemes are changing. And so should the approach to check fraud prevention.
For decades, fraudsters have attempted to falsify checks for quick payouts using counterfeits and forgeries. More sophisticated approaches have emerged, however, often involving newer mobile deposit channels or the use of high-quality printers. Without effective check fraud prevention measures, FIs cannot mitigate the potentially large ticket losses that can damage the bottom line and erode trust.
In the era of digitization, checks remain the dominant B2B payment used to fulfill financial obligations. This is particularly true in the United States. In fact, the U.S. makes up 74% of global B2B check volume.1
“With technology advancements, criminals today can defraud you as a consumer… easily with a blank check stolen from your checkbook, a previously paid or canceled check found in your garbage, or a check you have placed in your mailbox to pay a bill,” says Karen Taylor, senior product manager for financial and risk management solutions at Fiserv, a technology provider for the financial services industry.
Ways banks and credit unions can prevent check fraud
Meanwhile, in 2018, it was estimated that 500,000 Americans fell victim to fake check scams.2
With no signs of abating, check use and associated risk will continue to impact FIs.
To navigate these risks, as well as best practices for check fraud prevention, Advanced Fraud Solutions issued The Changing Landscape of Check Fraud white paper.
To enhance check fraud prevention, the white paper recommends implementing technology that can proactively spot and stop fraud before a loss can occur.
Advanced Fraud Solutions’ TrueChecks® solution evaluates checks across deposit channels – from the teller line, mobile to RDC – by scanning check data against the TrueChecks database. The database features over 10 years of historical data contributed from thousands of banks, credit unions, and processor sources. In all, TrueChecks hosts the industry’s largest deposit fraud database.
TrueChecks also seamlessly integrates with any existing system and offers real-time responses on counterfeit, NSF, Closed Account, Duplicate and other fraudulent items.
1 PaymentsSource, “Top insights form the 2018 World Payments Report” URL in reference
2 KPMG, “Global Banking Fraud Survey” URL in reference