How can credit unions cut check fraud nearly in half?
A case study of a credit union using an omnichannel partnership solution has some interesting results.
Check fraud accounts for 35% of industry fraud losses. In addition, with the growing popularity of new deposit channels – particularly mobile deposit – fraudulent deposits exploiting paper checks are rising again.
Greensboro, N.C.-based cybersecurity firm Advanced Fraud Solutions and Alogent, a-payment processing solutions provider, announced the release of a joint case study, “Fighting Check Fraud in Real-Time.” The study explored how AFS’s TrueChecks in conjunction with Alogent’s ImagePoint Hub significantly reduced check fraud losses at two credit unions, bolstering their omnichannel protection, simplifying check decisioning and lowering fraud losses to the financial institutions and members. (For consumers, losses from check fraud are on the rise to a median loss of $1,488 per incident).
As new deposit channels have gained widespread adoption, particularly ATM/ITM and mobile deposit, fraudulent actors search for new opportunities to exploit fraud prevention systems that have not kept pace with technological innovation.
“Check fraud is a persistent threat to banks and credit unions,” Ted Kirk, director of industry partnerships, Advanced Fraud Solutions, said. “By partnering with Alogent, we were able to create significant fraud savings for our mutual customers, providing them with an integrated, real-time check fraud solution that addresses both in-branch and remote deposit capture points.”
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