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.
ACH (Automated Clearing House) is an electronic payment network that enables banks, credit unions, businesses, and consumers to securely send and receive funds between accounts for transactions such as direct deposit, bill payments, recurring payments, and account transfers.
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.
Agentic AI refers to artificial intelligence systems that can autonomously plan, reason, make decisions, and take action to achieve specific goals with limited human intervention.
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.

Dormant accounts (usually checking or savings accounts) are those that have had no activity for a lengthy period. These accounts are considered sensitive in nature because they are more likely to be the target of embezzlement due to limited—or lack of—monitoring by the customer or member. Banks and credit unions must implement proactive measures to deal with dormant accounts to reduce such risks.

From Dormant Account to Escheatment

A financial institution’s core system will flag an account when it becomes dormant. Then, the bank or credit union will usually place the dormant account into a restricted status. This allows only certain employees to access the account, thereby reducing the risk of embezzlement.

After a set period, the bank or credit union will close the account, and funds are escheated to the state’s treasury. At that point, the customer or member (or his or her heir) must contact the state to reclaim the money. Escheatment times vary by state.

Protecting Dormant Accounts

As previously mentioned, banks and credit unions usually try to limit staff access to dormant accounts in their core system. Employees may still be able to retrieve dormant account information especially if the bank or credit union relies on paper documents that are still accessible to employees. Examples may include signature cards or other hard copy files.

To reduce the risk of employee theft, modern financial institutions are turning to electronic document management systems, such as AccuAccount. A system like AccuAccount can receive information from the core, identify dormant accounts, and automatically place dormant accounts into a restricted “branch.” This gives administrators the ability to limit user access confidently and instantly to dormant account information and related documentation.

Banking Resources

For more information about customer and account document management, be sure to check out our extensive resource library with free spreadsheets, whitepapers, and eBooks.

Browse our banking definitions page for more terminology.

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