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Fiserv: Steps to Better Check Fraud Protection

  • Check fraud is on the increase and touching more and more depositors
  • Over half of financial institutions report checks as the payment method most impacted by fraud
  • Technology currently exists to combat the threat

Detecting check fraud is -- to say the least -- complex. There are many variables that need to be considered, along with the cumbersome check deposit process. What is clear is that the technology currently exists to achieve 95% detection rates -- with newer technologies being released in H2 of 2024 to achieve 98%.

An article by David Reim, Product Director, Deposit Solutions at Fiserv, discusses four steps financial institutions can take right now to better protect against check fraud.

Even in the current digital banking environment – perhaps especially – better check fraud protection is needed to safeguard both the accountholder and the financial institution. America’s bankers certainly agree. In a recent survey, 66% of financial institution respondents said that checks continue to be the payment method most impacted by fraud.

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Here are the four suggestions:

Taking Steps to Detection

These steps are quite important for check fraud detection and used to detect different aspects of fraud. What is key throughout is that each of these steps produce risk scores. These risks scores are utilized by a check fraud review solutions to display each individual analyzer and an overall risk score.

This is beneficial for fraud analysts and reviewers to be able to review all the data on a check transaction to determine if the check should be rejected. The individual risks scores represent a type of explainable AI -- as it enables the analyst or reviewer to isolate the issue, I.e. amount discrepancy score is low, therefore the reviewer will look at the CAR/LAR fields.

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It's time for financial institutions to take action, putting together a multi-layered fraud strategy that deploys diverse technologies to provide the most robust check fraud detection solution.

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