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OrboNation Newsletter: Check Processing and Fraud – October 2023

63% of Businesses Report Experiencing Check Fraud Activity

One would think that, with digital payments becoming more and more pervasive, we should expect the check fraud threat to begin shrinking.

Unfortunately, that is not the case.

As reported on the Minnwest Bank website, a 2022 survey of businesses revealed the following:

  • 63% of businesses have reported check fraud activity, topping the list of payment fraud types. (Corporate card payment fraud came in a distant second at 36%)
  • 75% of businesses plan to continue using paper checks to some extent.

The article points out one of the key reasons check fraud persists -- the relative ease with which check fraudsters can pull off their capers...

Bit Builders, Inc. Delivers Turnkey Image Fraud Detection with OrboGraph

Integration of OrboGraph’s OrboAnywhere Fraud Module
with Bit Builders’ NextGen Digital Banking offers stand-alone platform

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Burlington, MA, September 20, 2023 – OrboGraph, a global leader in check and payment processing automation, has proudly announced a business partnership with Bit Builders, Inc., creators of the NextGen Digital Banking platform. The collaboration provides an industry-leading platform financial institutions can leverage to deter check fraud at the paying bank as well as the depositary financial institution.

Read the full press release →

Check Fraud Impact: Operational and Financial Costs

Alogent reports on the ways check processing and fraud prevention impacts financial institutions operationally and financially.

In the age of technology, financial institutions are often looking for ways to automate processes and make them more cost-efficient. However, when it comes to check processing, many banks and credit unions who are still using the same solutions implemented at the time of Check 21 may be unaware of the underlying financial and operational impact.

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Artificial Intelligence: Closing the Gap Between Large Financial Institutions and Regional Banks

Zor Gorelov, chief executive officer and co-founder of Kasisto, discusses in post for BAI how regional banks can use AI to improve efficiency and remain competitive with larger banks -- in spite of potentially daunting hurdles like costs and compliance concerns.

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2023 has been challenging for regional banks in the wake of bank failures earlier this year. Influenced by macroeconomic conditions, including high inflation and climbing rates, bankers are focused on managing their balance sheets and making smart investments as budgets remain tight. Many regional and mid-market executives are now exploring AI to remain competitive with bigger banks; yet misconceptions about AI can create barriers to adoption. The reality is that this technology can serve as a great equalizer in the industry and allow smaller banks to grow and scale.

Check Forgeries: Leveraging AI and Machine Learning for Signature Verification

Forbes reports on the roles of Artificial Intelligence and Machine Learning in revolutionizing the process of signature verification in the banking sector.

Despite increased digitization over the last decade, most organizations continue to rely on signatures as the primary method of transaction authentication. Signing checks, authorizing documents and contracts, approving transactions, and validating activities are just a few examples of key business activities that typically necessitate signatures.

Read the full article →

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Hidden Costs of Check Fraud: FIs at Risk of Losing Customers

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We all know that fraud can and does cost businesses revenue. However, the findings detailed in “The Next Chapter in Fraud: Using AI to Unveil Payments Intelligence,” a PYMNTS Intelligence and ACI Worldwide collaboration at, reveal that fraud costs customers as well.

More consumers are experiencing payment fraud, with an astounding 88% increase between December 2021 and March 2023. A PYMNTS Intelligence chart examines the array of challenges that providers report facing when working against fraud....

Read the full article →

FIS Details Emerging Technology Trends That Will Revolutionize Retail Banking

Jim Marous, Top 5 Retail Banking Influencer, Global Speaker, Podcast Host, and Co-Publisher at The Financial Brand, described in a post for the four emerging technology trends that will, he believes, revolutionize retail banking.

The importance of developing and deploying new digital services, building new business models and transforming from a product-centric to customer-centric culture should be the focus for the deployment of these advanced technologies. No longer can these initiatives be simply long-term objectives; they must be deployed now – and at digital speed and scale.

Read the full article →

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Examining a Real World Mail Theft/Stolen Check Scenario

While most in the banking industry are aware of the growing mail theft problem in the US targeting paper checks, many in the "public domain" remain in the dark. In a piece for, John Wasik expresses surprise that the desire for checks would actually lead to stealing from the post office:

I didn’t think thieves would be so brazen to steal mail. After all, it’s a federal crime. Yet an increasingly amount of theft is occurring where checks are stolen from mail.

Checks stolen from snail mail are not difficult to perpetrate. It’s easy to spot a standard envelope containing a check. Thieves then rip the check out of the envelope, change the payee to themselves or create new fake checks.

Read the full article →

Fraudsters Sharing Knowledge on “Drop Accounts” via YouTube

As students of check fraud know, getting one's hands on a stolen or counterfeit check is "only half the scam." No matter how nicely a fraudster has replicated a check, it's not "money" until it is deposited, however briefly, into a bank account that the financial institution considers legitimate.

A bank drop refers to the illicit practice of using someone else’s bank account, often through coercion or deception, to receive and launder money obtained through illegal means. The funds are then typically moved or withdrawn to conceal their origin and avoid detection by authorities.

Emphasizing “Trust” in Banking: Relationships Between Customer & Bank, Bank & Vendor

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A new study by PYMNTS reveals that, when choosing a bank, the majority of consumers are looking for a trustworthy FI when narrowing down their choices:

In the report “Credit Union Membership and Credit Profiles,” PYMNTS leverages insights gathered from a survey of over 4,000 U.S. consumers and 100 credit union (CU) executives to examine consumers’ interest in alternate and innovative payment methods from their financial institutions (FIs).

Read the full article →

Examining the Vulnerabilities of Fraud Scores for Online Merchants and Financial Institutions

Frank on Fraud reports on a new fraud technique revealed via Karisse Hendrick’s Fraudology Podcast, during her discussion with fraud fighter Nate Kharrl.

Some fraudsters, it seems, are exploiting fraud detection systems by purposefully blocking scripts and data points that are used to calculate fraud risk scores. Masking this key information allows them to artificially lower the scores and increase the chances that fraudulent orders will be approved.

Listen to the podcast and read the full article →


Check Fraud: Leveraging Both Unsupervised & Supervised Machine Learning Technology

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Jeremy Chen, senior director of product management at DataVisor, explores the growing need for adoption of machine learning technologies in order for banks to stay one step ahead of fraudsters.

Mr. Chen focuses on machine learning, a subset of artificial intelligence that uses experience and repetition to allow systems to learn and improve. He explores the advantages and challenges of two primary machine learning approaches: Unsupervised Learning and Supervised Learning...

Read the full article →

Central Bank Digital Currencies (CBDC): “Canadians Don’t See a Need”

Previously, we covered the United Kingdom and their push for the "digital pound." While there are many benefits for a central bank digital currency (CBDC), the real question remains: "Is there a desire or need for them?"

This is the question being pondered in Canada. In a story covering a recent report from the Bank of Canada, Payments Journal reports on a possible snag in that goal...

Read the full article →


Updating Legacy Systems: 62% of Firms Use Legacy Payments for Commercial Goods

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A new PYMNTS article explores the challenges facing businesses when it comes to updating legacy systems to embrace and take advantage of modern workflow solutions.

Unfortunately, many firms find themselves facing a reinvention of their systems.

Many simply don’t want to, and it is holding them back.

Firms shackled by legacy systems frequently struggle to meet customer expectations, falling behind competitors who embrace modern technologies and adapt to changing market dynamics.

Read the full article →