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Technology and Collaboration: The Foundation of a Strong Check Fraud Strategy

  • Check fraud is growing and becoming more sophisticated
  • Technology is keeping up with fraudsters
  • Careful implementation of anti-fraud tech is vital to staying ahead of fraud innovations

Sherah S., Head of Legal, Risk, and Compliance at CheckAlt, recognizes that check fraud is growing more and more common and accessible to fraudsters. That doesn't mean financial institutions and businesses are helpless against the threat, however. In a recent LinkedIn post, she discusses five strategies and insights for organizations to that are crucial to deploy in their battle against check fraud:


By leveraging technology like advanced machine learning algorithms, organizations can analyze patterns, swiftly identify potential instances of fraud, and stay one step ahead of fraudsters.

Creating a Strong Check Fraud Defense Starts with Technology

The proposed strategies above depend upon having the latest technologies available to financial institutions. We've noted several key technologies in the recent past -- including behavioral analytics, image forensic AI, positive pay, consortium data, and dark monitoring -- that are the foundation of strong check fraud strategies.

But, even if a financial institution leverages all of these technologies, they still need to be more strategic in how they are deployed. Working with a fintech partner like OrboGraph is the first step, as it allows banks to leverage the system in the right segment of their process -- crucial to ensure that fraudulent checks are flagged and returned during the proper time window.

Business, technology, internet and networking concept. Young businessman working on his laptop in the office, select the icon Fraud prevention on the virtual display.

Collaboration with other financial institutions is another key strategy. This can done in different ways -- from openly communicating with other FIs to joining a consortium to leverage data from other FIs. This enables FIs to verify and validate payments along with the account information to ensure that the check and the account is legitimate.

And, as Sherah S. goes on to note, while check fraud continues to pose a significant risk in today's financial landscape, careful strategic measures and leveraging of valuable insights can allow financial institutions to safeguard themselves against this ongoing and significant threat.

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