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#OrboIntelligence Check Fraud Resource Hub

Your centralized resource for primary and secondary research, industry trends, and 3rd party reports.

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Welcome to the #OrboIntelligence Check Fraud Resource Hub

Over the past 3 years, the banking industry has seen a meteoric increase in check fraud -- even with a decrease in check volumes. Traditionally the industry relied on the ABA Deposit Account Fraud Survey as the primary resource for data and trends on check fraud. However, today there are a wider range of resources available with a new report being published virtually every month.

 

To better serve the industry, OrboGraph not only executes its own research, but is taking a leading role in consolidating these materials into a centralized hub. In the fight against check fraud, the more information that is readily available, the better outcomes we as an industry can achieve.

 

We hope you find this hub to be beneficial. Please email marketing@orbograph.com if you would like to suggest/add additional resources or reports.

BAI: The State of Fraud in Financial Services

  • Check fraud still ranks among the top fraud in both 1st and 3rd party fraud
  • Check fraud is ranked 5th in reported fraud by customers
    • Frank McKenna, the Co-Founder and Chief Fraud Strategist for PointPredictive, notes that a potentially $1.2B that is not reported to banks.

2020 ABA Deposit Account Fraud Survey

The 2020 ABA Deposit Account Fraud Survey collects baseline information on check, debit card, and electronic payment fraud losses, and the actions taken by banks to reduce these losses. This bi-annual study is regarded as a major resource for check fraud.

Click here to download the report.

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2022 NICE Actimize Fraud Insights Report

NICE Actimize notes that they experienced an increase of 8% in check transaction volumes in 2021 and an increase of 106% in attempted fraud dollar value or checks in 2021.

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Exploration of Check Fraud in 2020

OrboGraph's Exploration of Check Fraud in 2020 is a compendium of data gathered from a short, focused survey which was designed to "take a snapshot” of check fraud trends for 2020.

This survey was delivered to financial institutions that include small community, regional, and large US banks. We designed questions to identify trends involving check fraud attempts and losses for both on-us and deposit fraud. Each question was tabulated with overall totals as well as cross-tabulated by size of organization.

Conclusions:

  1. On-us check fraud attempts: significant increase
  2. Deposit check fraud attempts: modest-to-significant increase
  3. On-us check fraud losses: low-to-modest increase
    1. Community banks seeing stable or reduction in losses
    2. 5-20B and 21-100B seeing modest increases
  4. Deposit check fraud losses: modest increase
    1. Community banks seeing stable or reduction in losses
    2. 5-20B and 21-100B seeing modest increases
  5. Community bank responses are generally experiencing less fraud attempts then mid to large banks
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IDology: The Cost of Fraud: B2B Payments Experience 10% Increase During the Pandemic

  • 69% of companies reported an increase in year over year fraud attempts
  • This is an increase of 53% compared to the prior year
  • Only 14% reported a decrease in fraud attempts
  • 18% reported that it stayed the same

2021 AFP® Payments Fraud and Control Report

  • In 2021, checks and ACH debits were the payment methods most impacted by fraud activity (66 percent and 37 percent, respectively).
  • Sixty-eight percent of organizations were targeted by Business Email Compromise (BEC) in 2021, which is a sharp decrease from last year’s figure of 76 percent and the second lowest figure since AFP began tracking this data.
  • Accounts Payable (AP) departments are most susceptible to BEC fraud, 58 percent of respondents report that their AP department was targeted by email scams.
  • The majority of organizations (two-thirds) is validating payment beneficiary information either through their vendor/bank or by using an external service

 

LexisNexis: The True Cost of Fraud Study

  • $4.00 in Fraud Costs per $1.00 Fraud Loss
  • Fraud costs rise 19.8% since 2019

Fraud/ol/ogy Podcast -- Hosted by Fraud Fighter Karisse Hendrick

Source: Fraud/ol/ogy Postcast

 

Fraud Fighter Karisse Hendrick has taken her passion for the world of fraud prevention and chargeback reduction and created the Fraud/ol/ogy Podcast. On the podcast, Karisse dives into all areas of Fraudology from the perspective of a fraud-fighter.

In this podcast, Kendrick speaks with Frank McKenna (from the popular blog "Frank on Fraud") about another growing fraud trend impacting the US especially. Physical Check Fraud. While many may assume that check fraud ended when credit card fraud became popular, it is getting a resurgence. In fact, check fraud utilizing stolen, physical checks is so lucrative that it has been the reason for a steep uptick in physically violent attacks on US Postal Workers.

The podcast also references Frank Albergo, the National President of the US Postal Police Officers Association who frequently posts news articles about the postal worker violence and David Maimon of Georgia State University who posts great information & research on the topic of check washing & physical check fraud.

Georgia State University’s Evidence Based Cybersecurity Research Group

  • 5,300 stolen checks sold on the dark web from 60 tracked chat rooms
  • Estimated $10M to over $30M in Check Fraud Losses Due to Mail Theft

 

Frank on Fraud Blog

Highlights from blog:

  • Frank McKenna, the Co-Founder and Chief Fraud Strategist for PointPredictive, notes that a potentially $1.2B that is not reported to banks in 2018.
  • Mailbox keys are worth up to $7,000 on the dark web -- fueling postal mailbox and carrier robberies
  • Armed robbery against postal works has surged 300% from 2018 to 2021
  • In the past 2 years, there have been over 2,000 assaults and robberies of postal carriers

 

Blog posts on check fraud:

check-fraud-infographic-May-2020 v2

Source: Frank on Fraud Blog

 

Abrigo Webinar: Check your checks and imposters: Latest fraud trends (2022)

To your knowledge, how large of a percentage is check fraud of total bank account theft?

  • 0% - 30%

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  • 31% - 60%

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  • 61% - 80%

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  • 81% - 100%

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Additional Check Fraud Resources

AI Forensic Fraud is the latest technology for signature verification.

Interview: Forensic Document Examination: Impact on Banking, Fraud, and Payments

Forensic document examination is foundational to OrboGraph’s OrbNet Forensic AI technology...

 

Click here to download the interview.

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#OrboZone Fraud Detection

Check fraud continues to persist...new technologies can combat these bad actors...

 

Click here to see Fraud Detection technology advancements with our videos and photo gallery...

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Article: OrboGraph Recognized as 2021 “Top 5 Fraud Detection & Prevention Software Companies”

OrboGraph featured in the article: New Innovations
In Imaged-Based AI Fraud Detection
Technology.

 

Click here to read the article.

Modernizing Omnichannel Check Fraud Detection Blog

#CheckFraud is Buzzing on LinkedIn

#CheckFraud has been buzzing on LinkedIn coming off of Fraud Awareness Week -- November 13-19, 2022. #FraudFighters across ...
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OrboNation Newsletter: Check Processing Edition – November 2022

Download PDF Copy of the Newsletter 78% of Renters Still Pay by Check - And It's Not Only ...
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Government Increasing Pressure on Post Office to Curb Mail Theft & Check Fraud

Checks remain a prime fraud target There is a thriving underground market for "glass" checks Assaults and thefts ...
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Did EMV Start the Check Fraud Pandemic?

EMV cards use a smart chip instead of a mag stripe to store the data needed to process a ...
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November 13-19 is International Fraud Awareness Week

International Fraud Awareness Week is November 13-19 There are no borders in the world of fraud, making it ...
Read More

Fraud Awareness Week Highlighted on LinkedIn

The past week on LinkedIn, #fraudfighters were out in force spreading the word on Fraud Awareness Week -- ...
Read More

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