Check Fraud Prevention Strategies for Banks

Is your financial institution experiencing record check fraud losses? You're not alone if you answered "yes." FinCEN has reported huge increases in check fraud SARS filings. The FBI estimates that check fraud losses amount to $18 billion a year. Payments by check are the least secure of all forms of payment, and organized crime takes advantage of these weaknesses. To identify and reduce check fraud losses, you need to be familiar with the current methods for preventing paper and digital check fraud.

In this 2 session webinar series, Laura Ponder, a financial crimes consultant, will discuss valuable strategies for reducing check fraud, regardless of whether the check is counterfeited, forged, or altered. Ms. Ponder will show you how to protect your customers and reduce your institution's check fraud liability.

What You'll Learn

During this important webinar, our expert speaker will discuss:

• How organized crime rings operate
  
• What steps can be taken internally to reduce fraud loss
  
• How to identify counterfeit, forged, or altered checks
  
• How to reduce digital check fraud
  
• How to update account agreements to minimize your liability
  
• The responsibility of customers to protect their accounts
  
• How to enforce customer responsibilities
  
• How to handle accounts after fraud occurs
  
• Which bank is liable for loss according to return rules for checks
  
• How you can create a local Financial Crimes Network

You’ll Also Receive

• PDFs of the presentation slides for each of the sessions and other materials the speaker may distribute
  
• Valuable training which will enhance your career development

Check Fraud Prevention Strategies for Banks Sessions Outline
Session 1: Overview and External Prevention Methods

• Review of the governance surrounding the check payment system
  Industry trends:
  • How old fraud is becoming new again
    
  • Advances in technology creating new types of fraud
  • Mail fraud updates
• How organized crime rings operate and market their service
  External prevention methods: External prevention methods:
  • How to educate your customers in the fight against fraud
  • Join or create local financial crime networks
  • Host fraud talks for your customers and community – become the expert

Session 2: Internal Prevention Methods, Contracts, and Customer Responsibilities

• Internal prevention methods:
  • Software vs manual reviews
    
  • How to educate the front line, deposit ops, and account officers
    
  • Use Reg CC in your fight
    
  • Review your RDC and mRDC procedures
    
  • Understand the difference between counterfeit and altered items and why it matters
    
• Customers have responsibility in the fight against fraud to review transactions timely
  
• Contracts and Agreements
  
  • Review of the Uniform Commercial Code
    
  • Use your consumer and business account disclosures to minimize risk
    
  • Review Treasury Management agreements, specifically Positive Pay, to ensure the bank risk is mitigated
    
  • Develop Indemnification and Hold Harmless agreements should your customers refuse to use Fraud Prevention Products
    
• Customer reports fraud, no what? We will discuss post fraud steps
  
• Who takes the loss? The BOFD, the Paying Bank or the Customer? We will review the Regular Return time frame and Breach of Warranty Claims.
  
• Reporting – how to track and report fraud attempts and losses to your board of directors and regulators