Modernizing Omnichannel Check Fraud Detection

In a story from The Boston Globe, we learn about a counterfeit check scheme involving recruitment (and intimidation) of homeless and transient people from Providence to commit fraud in Maine, Massachusetts, Rhode Island, and Connecticut. This was not a pandemic-related scheme; the four suspects began their scam in the fall of 2018, cashing or attempting to cash 450 counterfeit checks amounting to an estimated $450,000, according to an affidavit filed in U.S. District Court in Providence.

“Wonder when I’ll get my stimulus check? Unfortunately, some Washington state residents are out of luck for a while. They are being warned to be diligent about monitoring mailboxes after police found more than 100 pieces of stolen mail — including some stimulus checks — in a vehicle in Olympic National Park.

Scammers often flatter targets into submission Social media offers a buffet of possible targets In this case – a happy ending! One thing that can be said for fraudsters is that they know how to take advantage of human nature. The Los Alamitos-Seal Beach Patch reported recently on an enterprising “photographer” who used Instagram to…

New and innovative payment rails — the payment platforms or a payment network that moves money from a payer to a payee — are designed to bring some of the biggest legacy pain points of the financial services industry down to size. Fast, smooth passage of funds is a plus for all sides of a transaction.

The good news is this: COVID vaccinations are becoming easier and easier to get for more and more people in the United States. Many states are opening up vaccinations to the general public after early limited availablity, making it possible for anyone to get vaccinated against the COVID-19 virus and (so far) its variants. As more and more people get immunized, we head toward “herd immunity” and — dare we hope? — normal life again. As of mid April, half of all US adults will have been vaccinated.

While it would be nice to hear that the goal pandemic has slowed down scammers much like it has impacted above-board businesses of all kinds, the opposite is unfortunately true. The FBI has seen more complaints over the last year than years prior. As reported at KimKomando.com, The FBI’s Internet Crime Report annual release has revealed a shocking scope of online scams in the 2020 version. The FBI logged 791,790 complaints in 2020 — that’s 300,000+ more than in 2019.

The Financial Crimes Enforcement Network (FinCEN) recently issued an advisory to banks that outlined fourteen red flag indicators to be on the lookout for (and report) related to pandemic related economic relief payments. “Advisory on Financial Crimes Targeting COVID-19 Economic Impact Payments” is based on FinCEN’s “analysis of COVID-19-related information obtained from Bank Secrecy Act (BSA) data, public reporting, and law enforcement partners.”

In the pandemic era, with relief checks being mailed regularly, there is growing concern over the fact that these documents are being transported via fairly low-security boxes on street corners.

The Philadelphia Inquirer reports that fraudsters have begun to look upon mailboxes as buffet lines for scams: “The thieves have been stealing checks, forging signatures, and amassing personal information from the mail to commit identity theft, according to interviews with victims, Philadelphia police, and postal sources. Of the more than a dozen victims The Inquirer has interviewed, the total funds stolen over the last three months amounts to at least $100,000. Multiple individuals had more than $15,000 stolen. The speed and breadth at which the thieves are compromising the mail, and the lack of any physical damage to the structures, suggests they may have keys to the boxes, law enforcement and postal experts say.”

AFS Positive Pay is a new product being rolled out by Advanced Fraud Solutions (AFS). The new product looks to advance the capabilities of a traditional positive pay solution by assisting financial institutions (FIs) and enterprise customers examine the changes in payments information to prevent fraud. As reported on PYMNTS: AFS Positive Pay will allow FIs and businesses to monitor payments and receive immediate notices when payment information from vendors, including routing numbers, account information or amounts, doesn’t correctly correspond, the release stated.