Fraud Solutions for Retail Banks

Heading off fraud in the banking industry is a continuous battle for community retail banks and credit unions. White collar criminals committing these fraudulent acts are becoming more and more sophisticated, making it hard to detect and resolve these crimes. There are so many ways scam artists are conning financial institutions that the only way to keep up or even get ahead of criminals is to use highly intelligent software that integrates with banking operational systems. Here are some of the ways that criminals are trying to commit bank fraud.

Check Fraud Forged signatures, forged endorsements, counterfeit checks, altered checks, and check kiting are just a few of the many check scams that exist today. This is one of the most common types of fraud committed at banks today, accounting for millions of dollars of losses each year.

Uninsured Deposits
This kind of fraud occurs when illegitimate companies are able to persuade their customers to not pay their taxes, particularly those who have very high interest rates. This goes unnoticed by many federal banks or financial institutions because the companies are not authorized or monitored by these banks and institutions in the first place. This means that depositors are not able to acquire insurance or protection on their investments from states or federal institutions.

Credit Card Fraud This is a very common fraud that is often associated with Identity Theft. Financial institutions have to be knowledgeable about unreported stolen cards, card number skimming, BIN attacks, balance transfers and many other types of credit card fraud. This especially happens to those people who have not safely kept their credit cards, statements and bank documents safe from criminals and “dumpster divers”

Loan Application Falsifications
Otherwise known as loan fraud, this kind of banking fraud occurs when a person presents false information in order to qualify for a loan. One particular example is in the application for mortgage or equity loans. There are even times when loan officers are involved in the fraud and may be persuading the person for falsify information.Financial institutions are currently being challenged by creative criminals who have already come up with creative and sophisticated means to perform their fraud tactics. With the advent of technology, banks have already taken some steps to get their hands on new and innovative fraud solutions for retail banks that will enable them to evolve stop fraud at the teller window, enhance the customer experience with speedier transactions and improve thier fraud alert systems with specialized workflow software designed to catch anamolies.

End to End Fraud Coverage
Detection systems for financial institutions allow them to point out and prevent fraud in all their bank channels including real time fraud detection at ATM’s. With a good set of fraud management workflows and alert systems, banks are now able to rapidly respond to changing patterns in their system. We look to advanced fraud solutions for retail banks and use business intelligence software that can also reduce check fraud at the tellers window as well as the ATM machines. If detection systems are to be successful, then everything including signatures must be digital. Therefore document imaging services for banks should scan older signature cards and begin archiving documents digitally.