Similar to identity theft, this type of fraud happens when an unauthorized individual gain access through online banking applications, capturing the account information to create and write bad checks.
Account-centric enterprise content management solutions allow users to access account holder information based on their account numbers.
An adverse action notice is a document sent to a loan applicant stating a bank’s rationale for denying a loan. It may also contain a counteroffer, such as a lesser amount or a request for an approved co-borrower.
The term “aging exceptions” refers to a group of critical exceptions that have not been resolved within a reasonable amount of time.
Altered check fraud occurs when a fraudster changes the amounts and Payee from a stolen check.
API is short for “application programming interface.” Technology companies like Alogent rely on APIs to connect multiple software applications, thereby enabling a two-way exchange of information to support users’ needs.
Audit and exam prep is a process that financial institutions go through in order to adequately prepare for upcoming audits and exams.
An authorized signer form is a document that allows an account holder to grant a range of clearance levels to individuals to perform certain functions within a bank account.

Day Zero

Bankers involved in payments may be familiar with Day 1 processing, which is the period of time that spans from an item entering the payment stream through X9 file distribution. “Day Zero” refers to the closest moment to when Day 1 processing begins. Although Day Zero and Day 1 might be used interchangeably in certain banking contexts, detecting fraudulent payments as close to real time as possible (on Day Zero) is ideal. Waiting until the end of Day 1 or even Day 2 exposes financial institutions to unnecessary risk.

Detecting Fraud As It Happens, Across Any Channel

Implementing payment solutions that leverage computer vision and AI technology makes it possible to achieve near real-time fraud mitigation. However, fraudulent payments can enter through a variety of channels, which speaks to the importance of developing a comprehensive strategy across the various points of presentment:

  • Teller capture
  • Digital banking
  • Mobile capture
  • Merchant capture
  • Image-enabled ATMs and ITMs
  • Self-service kiosks

For example, a bad actor might try using his smartphone to illegally deposit a washed check. Another fraudster might attempt a check kiting scheme through interactions with a teller at the local branch. Having systems in place that immediately detect fraud attempts through these and other channels puts a financial institution in a position to rapidly mitigate check fraud.

Benefits of Identifying Fraud on Day Zero

Proactively mitigating payment fraud on Day Zero offers multiple benefits for banks and credit unions, including:

Reduced Day 2 Processing: Keeping bad checks out of the payment stream translates into reduced confusion and less investigative work for back-office staff.

Cost Avoidance: Banks and credit unions may be able to avoid costly write-offs and reallocate administrative support for more important initiatives.

Enhanced Reputation: Exchange partners and the community at large appreciate financial institutions that value proactive fraud prevention.

Explore Alogent’s suite of payment solutions, including Alogent Shield and Alogent Shield+*. Contact us to schedule a free product demo for your bank or credit union.

 

 

*Alogent Shield + is powered by Mitek

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