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Advanced Fraud Solutions

First in Fraud Defense

  • Who We Work With
        • WHO WE WORK WITH

        • Credit Unions
        • Half of the top 100 credit unions trust Advanced Fraud Solutions to serve as their omnichannel deposit fraud mitigation systems, protecting check, card and ACH.

        • Banks
        • Banks from $100 million to $100 billion rely on Advanced Fraud Solutions for their deposit fraud data, and to help them make real-time decisions on items.

        • Partners
        • Financial services hardware and software providers partner with Advanced Fraud Solutions because of their industry-leading fraud mitigation services and years of experience.

  • Solutions
        • SOLUTIONS

        • TrueChecks Logo
        • TrueChecks®
        • Despite falling check volume and usage, check fraud continues to rise. Our real-time deposit fraud detection software catches bad checks and reduces losses for banks and credit unions.

        • TrueCards Logo
        • TrueCards®
        • Learn about Advanced Fraud Solutions’ card fraud detection tools that use Dark Web sources to pinpoint at-risk cards in your debit and/or credit portfolio.

        • AFS Positive Pay Logo
        • Positive Pay by AFS
        • Learn about Advanced Fraud Solutions’ proactive check and ACH payment monitoring tool that helps financial institutions and businesses mitigate vendor and payroll fraud.

        • TrueACH® with Account Validation
        • Learn about Advanced Fraud Solutions’ ACH account validation tool that helps keep financial institutions in compliance and reduces faster payments fraud.

  • Insights
    • Check Fraud
          • 2022_Changing Landscape of Check Fraud
          • 2022: Changing Landscape Of Check Fraud

            Check fraud remains a pervasive issue. Banks and credit unions still cite check as a major fraud risk. Even despite a lower volume of checks in circulation, fraud… Download now>>

          • Check Fraud Remains a Significant Threat_300x123
          • Check Fraud Remains a Significant Threat

            Check fraud remains tenaciously persistent. Fraudsters continue to take advantage of access to inexpensive technology, social engineering tactics, and remote business practices to engage in illegal and deceptive check fraud schemes. Read now>>

          • Advanced Fraud Solutions Appoints Jordan Bothwell to Vice President of Strategic Partnerships_300x123
          • Advanced Fraud Solutions Appoints Jordan Bothwell to Vice President of Strategic Partnerships

            Advanced Fraud Solutions announced the appointment of Jordan Bothwell to Vice President of Strategic Partnerships. Jordan joins the position following a decade of experience in fraud prevention and… Read now>>

    • Card Fraud
          • Shedding Light On The Dark Web
          • Shedding Light On The Dark Web

            The Dark Web is home to many of the fraudsters targeting credit unions and banks. In this webinar, hosted by Q6 Cyber and Advanced Fraud Solutions, we will venture into the Dark Web (back by popular demand!) and profile the latest trends in financial fraud and cybercrime. Watch now>>

          • Advanced Fraud Solutions Adds Enhancements To TrueCards Platform
          • Advanced Fraud Solutions Adds Enhancements To TrueCards Platform

            Advanced Fraud Solutions (AFS), a leader in deposit fraud detection software, today announced updates to the TrueCards® platform, AFS’ omnichannel debit and credit card fraud prevention solution. Read more>>

          • Beating BIN Attacks: How To Protect Against Card-Not-Present Fraud
          • Beating BIN Attacks: How To Protect Against Card-Not-Present Fraud

            Card-not-present fraud (CNP) continues to flourish. In fact, there’s been a 25% increase in exposed CNP records, a total of 45 million, since 2019. Download now>>

    • ACH Fraud
      • Protecting ACH Payments_2022
      • Advanced Fraud Solutions Announces New Account Validation Tool to Address Nacha’s WEB Debit Account Validation Rule
      • How Financial Institutions Can Manage ACH Risk_300x123
      • Protecting ACH Payments

        How do financial institutions, who increasingly rely on ACH, safeguard faster payments and stay in compliance with Nacha? AFS’ new report issues related to fraud and compliance have also become top-of-mind for financial institutions.  Download now>>

      • AFS Announces New Account Validation Tool to Address Nacha’s WEB Debit Account Validation Rule

        AFS announced TrueACH® with Account Validation – a new ACH tool that enables financial institutions to confirm account status and authorized user(s). TrueACH with Account Validation was developed in response to Nacha’s WEB Debit Account Validation Rule, which requires financial institutions to apply a “commercially reasonable… Read more>>

      • How Financial Institutions Can Manage ACH Risk

        Financial institutions increasingly rely on the ACH Network to facilitate transactions. With that comes a responsibility to manage ACH risk, including helping to prevent fraudulent payments and mitigate any potential losses. Read more>>

    • Positive Pay
      • Fighting Fraud: How To Secure Business Accounts Against The Latest Fraud Tactics, Threats
      • Advanced Fraud Solutions Announces New Positive Pay Solution To Help Financial Institutions Fight Vendor Fraud
      • Looking Out For Payroll And Vendor Fraud: A Financial Institution's Guide
      • Fighting Fraud: How To Secure Business Accounts Against The Latest Fraud Tactics, Threats

        Amid the COVID-19 pandemic, fraud operators have capitalized on the behavioral shifts of workers and consumers, as well as the migration of payments online and the massive increase in PPP loans, stimulus checks, and expansion of unemployment benefits. Watch now>>

      • Advanced Fraud Solutions Announces New Positive Pay Solution To Help Financial Institutions Fight Vendor Fraud

        Advanced Fraud Solutions (AFS), a leading provider of deposit fraud detection software, today announced the launch of AFS Positive Pay – a positive pay solution designed so that financial institutions, and their enterprise customers, can proactively monitor changes in payments information. Read now>>

      • Looking Out For Payroll And Vendor Fraud: A Financial Institution’s Guide

        A financial institution’s guide to protecting business accounts from payment tampering, redirection, and business e-mail compromise. Download Now>>

    • Consumer Scams
      • Beware Of Mobile Deposit Scams
      • Romance Scams On The Rise: How Fraud Operators Exploit The Rise Of Online Dating In A Socially-Distant World
      • Four Dangerous Stimulus Scams
      • Beware Of Mobile Deposit Scams

        According to the FBI, there has been a 50% surge in mobile banking since the beginning of 2020. Download now>>

      • Romance Scams On The Rise: How Fraud Operators Exploit The Rise Of Online Dating In A Socially-Distant World

        The rise in online dating sites, coupled with the onset of social distancing in 2020, have helped make personal loneliness a target for virtual con artists. Download now>>

      • Four Dangerous Stimulus Scams

        Reports of stimulus payment-related fraud have sharply increased following the passage of the second stimulus package. Read now>>

    • Business Banking
      • Looking Out For Payroll And Vendor Fraud: A Financial Institution’s Guide
      • Protecting Business Accounts Against Fraud
      • How Banks And Credit Unions Can Build A Culture To Fight Fraud
      • Looking Out For Payroll And Vendor Fraud: A Financial Institution’s Guide

        A financial institution’s guide to protecting business accounts from payment tampering, redirection, and business e-mail compromise. Download Now>>

      • Protect Business Accounts Against Fraud

        For businesses, trust in their financial institution is paramount. But with so many businesses under attack from fraud operators, where do they turn? In this webinar, the AFS fraud experts explore the latest fraud tactics — including BEC, vendor and payroll fraud — being deployed against businesses… Watch now>>

      • 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. Read now>>

    • Webinars
      • ACH Payments: Preventing Fraud, Addressing Compliance

        Join AFS experts as they discuss the latest threats to faster payments; how to best safeguard ACH transitions; and what measures banks and credit unions can take to meet Nacha’s account validation requirements. Download Now>>

      • Protect Business Accounts Against Fraud

        In this webinar, the fraud experts at Advanced Fraud Solutions will explore the latest fraud tactics — including business email compromise, vendor and payroll fraud — being deployed against businesses and what financial institutions can do to help businesses proactively identify fraud, mitigate their losses and protect mobile deposits. Download Now>>

      • AFS Presents: Check Fraud Prevention 2021

        Fake check scams cases spiked in 2020. Fraud operators spied opportunities to accelerate their attacks and profit off of romance scams, secret shopper scams, unemployment scams and other fraud schemes. Download now>>

    • White Papers
      • The Changing Landscape Of Check Fraud

        In 2020, check fraud was down, due in part to branch closings and the migration to digital payment methods. Download now>>

      • Beating BIN Attacks: How To Protect Against Card-Not-Present Fraud

        Card-not-present fraud (CNP) continues to flourish. In fact, there’s been a 25% increase in exposed CNP records, a total of 45 million, since 2019. Download now>>

      • Protecting ACH Payments

        How do financial institutions, who increasingly rely on ACH, safeguard faster payments and stay in compliance with Nacha? AFS’ new report issues related to fraud and compliance have also become top-of-mind for financial institutions.  Download now>>

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The Warning Signs And Growing Threat Of New Account Fraud

The Warning Signs And Growing Threat Of New Account Fraud

In the world of deposit fraud, new account fraud is a frequent flyer because without an established history it can be easier for new account holders to sneak through. Teaching your staff how to spot potentially fraudulent new accounts is a great way to get ahead of this popular scam. According to the 2015 Data Breach Fraud Impact Report published by industry analyst Javelin Strategy and Research, new account fraud was projected to increase from $5B in 2014 to $8B in 2018. Here are some tips to help your bank or credit union get out in front of this growing trend.

First, new account fraud typically occurs on an account within the first 90-days it is open. This is the window to watch new accounts more closely for suspicious activity. Also, most fraudsters will wait for more than 30-days to make the first deposit. They may also start with small deposits and withdrawals in the first month to make the account appear normal.

Learn about TrueChecks®

Watch for these patterns of new account fraud

Many new account fraud perpetrators will make deposits on a Friday or Saturday before a banking holiday. This gives them more time to withdraw the funds before any deposited items are returned. However, having TrueChecks® in place can help by spotting potentially fraudulent items at the point of presentment. Placing items on an extended hold can prevent fraudsters from taking withdrawals from the money before fully approved.

Stolen, forged, and counterfeit checks drawn on new accounts are one of the most common types of new account fraud. As soon as funds are available, the deposited items are withdrawn, and the fraud is not known until the deposited items are returned unpaid to the bank or credit union several days later. This can also be avoided by using the combination of TrueChecks® and updated check cashing procedures, to match the actual period it takes for a check to be returned. By eliminating that period where checks balances are made available before they are fully vetted, the FI can get ahead of this common fraud practice.

Look out for a new name, Social Security number, or DOB

Watch out for new accounts opened with the name, social security numbers, and/or date of birth of an identity theft victim. There are multiple ways to verify a customer’s identity. Check if there are any identity theft reports. Typically, you using one of the three major credit bureaus is the most common practice.

Look for unestablished businesses with limited supporting documentation. Making up a fake business is an easy way for fraudsters to open new accounts. Moreover, often, business accounts are given greater privileges, and larger daily maximum withdrawal limits so be careful of these ‘fake’ business accounts.

Deploy extra caution with allowing accounts to be opened not in person. With the anonymity of the internet, many fraudulent new accounts are opened through online banking, telephone, or email.

Top 10 red flags to interdict new account fraud

Here are some important red flags for new account fraud, as compiled by the Association of Certified Fraud Examiners (ACFE):

  • Check that the name provided by the applicant matches the return by the credit bureau search of their SSN. A mismatch almost always indicates fraud!
  • Check if two different names, with different addresses, appear under the same SSN. Normally the established one will have a longer history than the other. This would indicate someone merely using the established SSN of another person.

Be wary of applicants with newly issued Social Security numbers

  • If the applicant is 25-years or older and has a newly issued SSN – red flag!
    • If the applicant is older than 25, with an established SSN, but has an established name and address information within just six months, it could be problematic.
    • Alternatively, if the primary ID was issued within the last 60 days, this could be someone assuming the identity of a real citizen and having to obtain legitimate identification within their state of residence. Unless the applicant has recently moved to the area from another state, his/her ID should be older than 60 days.
    • If the applicant is older than 25 and doesn’t have any previous financial institution history. Most adults have some checking or savings account history of financial institutions starting in high school or college. It is highly unusual to make it to 25-years-old without any such history. People opening new accounts are often in the process of moving and use checks from old accounts as initial deposits. More often than not, individuals will have a history at a financial institution. Most working individuals use electronic banking, ATMs, direct deposit, and similar services.

Small cash deposits are difficult to trace

  • If the opening deposit is a small cash deposit under $500, this can indicate fraud. The purpose of using cash is that it’s untraceable. Some criminals will not risk using counterfeit or forged items to open new accounts. Banks usually place holds on new accounts to provide ample time for the check to clear before the new customer is allowed to draw funds against the deposits. No holds are placed on cash, and fewer questions are asked of customers presenting small cash deposits.
  • Using a mail drop instead of a real street address is a red flag. This is another way an individual can hide their true identity and avoid capture when their fraudulent activities become known. Typically, private companies will rent mail drops and can refuse to provide the name of the individual who paid for the box. Almost any individual can rent a drop box without undergoing background verification. These establishments provide their customers with a valid street and city address and a box number at which to receive mail.
  • For business accounts, if the applicant’s home or business address is not in the same geographical region as the financial institution, this could indicate fraud. This is done so the individuals who initiate new account fraud remain unknown to the local branch offices.
  • Look for a match on the address on the presented identification and the home address provided. If they do not match, it could indicate fraud. Many financial criminals will obtain identification in the true identity of an unsuspecting individual. The victim’s and the fraudster’s information will be the same on formal documents; the only difference will be the photograph. To avoid documentation being forwarded to the victim’s residence, the perpetrator of new account fraud will provide a different address for the mail.
  • Be wary of non-driver ID cards. Identification cards for non-drivers can be easier to fake than state motor vehicle issued cards. Financial criminals prefer non-driver ID cards because they are easy to obtain and hard to trace.
  • Behavioral cues to train your staff to look for include an applicant being overly friendly and trying to establish a quick rapport with a banker. They may also dress or act inconsistently for the customer’s stated age, occupation, or income level.
  • Lastly, one of the most significant red flags is if a new account applicant asks for an immediate cash withdrawal upon deposit or requests a large quantity of temporary checks. If they don’t have an established/verifiable reason, this is a red flag for fraud.

We hope these tips will help your FI stop more deposit fraud, and train-up staff. Once staff members know what to watch for on items, new account fraud could be spotted and stopped. Stay tuned to the Fraud Fighters blog next week for tips for spotting mobile deposit fraud. 

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  • Who We Work With
    • Credit Unions
    • Banks
    • Partners
  • Solutions
    • TrueChecks®
    • TrueCards®
    • Positive Pay by AFS
    • TrueACH® with Account Validation
  • Insights
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    • White Papers
    • Webinars
  • About AFS
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