In 2022 alone, financial
institutions issued 680,000 reports of check fraud to the Financial Crimes
Enforcement Network – an increase of 94% over the previous year. Lacking
adequate security and detection controls can lead to significant financial
How can credit unions protect
themselves against check fraud? Understanding the importance of detecting fraud
in real-time is beneficial.
Check fraud is the process of
cashing stolen or counterfeit checks to steal funds directly from a victim’s
account. It’s often committed on a larger scale by sophisticated criminal-run
operations. As years have progressed, these fraudsters have transformed into
highly organized perpetrators, causing significant losses to financial
Check fraud is magnified
during the holiday season, and fraudsters try to find the weakest entry point,
hence the need for a solution to minimize the risk of financial losses.
Furthermore, these advanced schemes rely on the extended processing window and
slower fraud detection techniques to withdraw victim funds successfully.
Real-time point-of-deposit detection minimizes these challenges by alerting
credit unions instantly and allowing them to take immediate action. Faster
intel equals better protection of your members’ funds.
As you know, credit unions
that accept fraudulent checks may be responsible for reimbursing account
holders who become victims of check fraud. With incidents on the rise, so are
losses incurred by credit unions.
In addition to financial
losses, check fraud can also generate negative publicity, which can be
detrimental to a credit union’s success.
Until checks disappear
entirely, it’s beneficial for credit unions to invest in proactive measures to
protect themselves and their members against check fraud.
Credit unions can protect
themselves against financial loss by integrating a real-time detection solution
that alerts tellers and back-office staff of possible risks associated with
Catalyst Corporate teamed up
with Advanced Fraud Solutions to bring you TrueChecks®, a real-time check fraud
detection solution that can save credit unions from potentially significant
losses every day.
TrueChecks sends messages with corresponding green, yellow, and red light alerts to guide tellers and back-office staff to accept, place a hold, or deny items. An inquiry on a deposit item may generate one of 27 possible responses to warn of potential NSF, closed accounts, duplicates, counterfeits, etc.
In addition to detecting
fraud, implementing TrueChecks helps credit unions demonstrate their investment
in safeguarding member accounts against the growing threat of check fraud.
To protect your credit union
against check fraud loss – in real-time – look to Catalyst’s premium check
fraud detection solution, AFS TrueChecks. For more information, contact us today.
Jordan is responsible for
developing relationships with credit unions and facilitating the sale of
Catalyst’s correspondent, payment, and technology services. He also represents
Catalyst at area credit union events. Jordan gained experience in the community
banking segment, working for Fitech Payments, representing and implementing
their payment processing services.
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