NICE Actimize: Check Fraud Insights from Industry Experts
- Financial institutions should take advantage of today's advanced communication modes
- Attention to digital channels has left check security on a "lower tier"
- A multi-layered tech approach is the answer
Over the past few years, OrboGraph's Marketing Manager and Fraud Detection Specialist, James Bi, has traveled across the US speaking at various banking industry and payment association events to discuss check fraud. We're all aware that check fraud continues to grow; Mr. Bi notes during each of his speaking engagements that FIs need to increase communication with other FIs to stay on top of the different trends.
In this tech-driven age, communication has never been easier. Fraudsters are taking advantage of emerging technologies to hone their crafts and continuously share with fellow fraudsters new tactics and approaches. Financial institutions should be doing the same. For decades, financial institutions looked at each other as competitors, fighting for deposits and clients. However, the proliferation of fraud makes it vital for FIs to increase their communications amongst one another to keep pace with the fraudsters.
This is not limited to just communication amongst FIs; it should include discussions with fintech vendors like OrboGraph and other industry experts.
NICE Actimize Q&A with Check Fraud Experts
In a recent post from NICE Actimize, Kim Hamilton, Vice President, Premier Product Management, gathered practitioners and experts from different FIs to offer their unique perspectives as to why check fraud is increasing -- and what can be done to proactively mitigate it.
- Kristin Hines, Fraud Strategy Officer at Gate City Bank
- Panelist 2, Product Leader at a Top 5 U.S. Retail Bank
- John Ravita, Director of Business Development at SQN Banking Systems
They collectively bring over 40 years of financial services experience to the table.
The experts were asked to provide their insights on a wide range of topics, including drivers for the increase in check fraud; regulatory changes that can assist in fighting check fraud, and; where they see check fraud in 5-10 years.
Here is the full list of the questions:
- What do you believe is causing the increase in check fraud?
- What tactics are fraudsters using the most when attempting to commit check fraud?
- What risks and challenges does check fraud present to financial institutions?
- What are some best practices and technology that FIs can implement to combat check fraud?
- What sort of regulations can or should be implemented if any?
- How should we involve the consumers in the fight against check fraud?
- What do you predict will happen with checks and check fraud in the next 5-10 years?
You can read the full Q&A session here.
Highlights from the Check Fraud Q&A
Below are the highlights from the Q&A session:
For decades checks have been mostly ignored from an investment perspective by FIs -- with many FIs pushing resources to digital payment channels. This, along with an increase in mail theft and the pandemic has fueled check fraud.
Check Fraud: What We Can Expect in the Near Future and How To Strengthen Check Fraud Detection NOW
Ms. Hines and Panelist 2 provide a stark future reality:
Check fraud is here to stay.
However, there appears to be a misconception when it comes to what technologies are currently available and how effective they are for check fraud detection -- specifically when it comes to counterfeits and alterations.
OrboGraph's Anywhere Fraud powered by OrbNet Forensic AI enables banks to detect over 95% of counterfeits and alterations. Our solution deploys specific analyzers to interrogate the images of checks, including:
- Check Stock Validation (CSV-AI)
- Writer Verification (WV-AI)
- Alteration Detection (AD-AV)
- Automated Signature Verification (ASV-AI)
Marrying Anywhere Fraud with other technologies -- including behavioral analytics, consortium data, and dark web monitoring -- in a multi-layered technology approach provides FIs with the most effective check fraud detection strategy.
To learn more about Anywhere Fraud or to see a full demonstration, click on the button below.