Check fraud is on the rise, posing significant challenges for community banks and large banks struggle. VALID Systems we offer risk decisioning capabilities to combat fraud across the customer journey to safeguard your financial institution and your customers. #Banking #CheckFraud #AI https://lnkd.in/gD7WdK_v
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Have you ever wondered what would happen if your bank suddenly closed your accounts without warning? The #newyorktimes shed light on an alarming trend in the US, where bank customers find themselves caught in a whirlwind of confusion as their cheque and savings accounts are swiftly shut down, along with their debit and credit cards. The most distressing part? They are often left clueless about what went wrong. While the reasons behind these closures vary, customers are usually left with little explanation or detail. In certain instances, they only discover the problem when their accounts are declined at the grocery store, car rental counter, or even the ATM. And when they reach out to their bank for help, they are met with a frustrating realization: the bank has the authority to close their accounts at any time without providing a specific cause. This practice, known as "exiting" or "de-risking," aims to combat fraud, terrorism, money laundering, and other criminal activities. But here's the catch: individuals, families, and small-business owners are often caught in the crossfire, unaware of the red flags that triggered their sudden account closures. Banks employ sophisticated algorithms that flag suspicious transactions or behaviour, which are then reviewed by human employees. Unfortunately, the frequency and accuracy of these account closures remain largely undisclosed by banks. 🤔 How long before the banking system in Australia starts down the same path? It's pretty frightening to think how this sort of power can be used against people with very little apparent right of review. Will advancements, in tech, such as artificial intelligence, assist banks in detecting genuine suspicious activities while minimizing the risk of incorrect closures? Th #businesslaw #bankingandfinance #legal https://lnkd.in/gstZ5A49
Why Banks Are Suddenly Closing Down Customer Accounts
https://www.nytimes.com
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Deposit fraud 💸 is hitting banks and credit unions on all fronts these days. While old-school, low-tech deposit fraud at the teller window hasn't disappeared, fraudsters have switched up their tactics. Now, they’re incorporating new schemes to exploit deposit channels that don’t require face-to-face human interactions—like ATMs and remote deposit capture. 🏧 💡 Explore why deposit fraud is such a persistent problem for banks and credit unions, and more importantly how FIs can fight back using a powerful one-two punch of big data and predictive analytics in our latest blog.
Say Hello to Big Data - and Goodbye to Bank Deposit Fraud
earlywarning.com
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@American Banker highlighted how community banks are facing a surge in check fraud. But check fraud isn’t the only way bad actors take advantage of the insecurity of checks. Remote deposit via banks’ apps and websites has also resulted in increased fraud through “duplicate presentment,” in which fraudsters use remote deposit capture to cash a check more than once. Regulators need to provider a real solution for consumer financial services providers and consumers across the nation. 👇 Get articles and analysis like this straight to your inbox by joining @INFiN https://lnkd.in/gD7WdK_v
'Like wildfire': Rising check fraud pits small banks against big banks
americanbanker.com
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Fraud detection and prevention are two of the most critical competencies in banking today. The ground reality for banks today is that firms will be dealing with thousands of fraud attempts every single month. And should a criminal succeed, the bank pays the price in reputational damage and regulatory penalties. Full article via ComplyAdvantage https://lnkd.in/djEdhmhr #fraud #frauddetection #kyc #fraudprevention
A quick guide to fraud detection & prevention in banking
complyadvantage.com
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I have had this sense - for a long time now, that the large banks are NOT performing the same level of due diligence that community banks undergo in new account openings. Why do I have this feeling? Because I know what it takes to open an account here and I often ask people what was required of them when they opened an account at a big bank and the two are vastly different. Now I know that is anecdotal but I think we have more evidence and it is time for the regulatory agencies to hold the large banks accountable for their failures in AML/CFT. Good article by Kate Berry.
'Like wildfire': Rising check fraud pits small banks against big banks
americanbanker.com
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Payments fraud — and check fraud in particular — is ravaging community and regional banks. I visited with Mel Channell and Jeff Powell to discuss best practices for avoiding these losses. An abridged transcript of our spirited discussion at Phelps Dunbar LLP ‘s recent banking roundtable is below. #paymentsystems #fraudprevention
In our third #banking roundtable this year, Phelps Partner Christopher Couch chatted with Mel Channell of Trustmark Bank and Jeff Powell of First Horizon Bank on the new complexities in addressing fraud.
Roundtable Q&A: Challenges of Fraud Prevention in the Digital Banking Era
phelps.com
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The rise of digital banking and faster digital payment methods has also accelerated scam & fraud activity spurring Banks to escalate their protective actions to keep pace #financialservices #fintech #payments
Fraud Losses From Impersonator Scams Double For Largest US Banks
pymnts.com
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Banking fraud can be difficult to detect when misclassified as credit risk or written off as a loss without further investigation. Learn about the different types of banking #fraud and how you can effectively detect and prevent it: https://bit.ly/3rzxLP9
Fraud Detection in Banking - Experian Insights
experian.com
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7 common banking scams (and how to avoid becoming a victim) "Banking scams are common, and they're becoming more sophisticated. Learn how to avoid the seven most common bank scams." https://brev.is/P5fFZ
7 common banking scams and how to avoid them
finance.yahoo.com
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Study predicts 111% increase in UK fraudulent banking and money transactions by 2029 A new study by Juniper Research projects a 111% rise in UK fraudulent transactions by 2029, stressing the need for AI-based fraud detection solutions and enhanced data sharing to combat the threat.
Study predicts 111% increase in UK fraudulent banking and money transactions by 2029
https://theintermediary.co.uk
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