Fraud Investigator Facing 14 Fraud-Related Charges

Could This Real-Time Fraud Detection and Prevention System
Have Stopped Him?

Steven Knigge, a retired fraud investigator with the South Dakota Department of Revenue, is facing fraud-related charges including bank fraud, money laundering and wire fraud. But this is not Knigge’s first go-round. In fact, the government says he committed these crimes while on supervised release from prison… serving a sentence for previous fraud charges.

The government has charged Knigge with 14 total counts: eight counts of money laundering, five counts of bank fraud and one count of wire fraud. He’s now looking at a potential 30 years in prison and a million-dollar fine for bank and wire fraud, and 20 years and a half-million-dollar fine for money laundering.

So, what exactly is Knigge accused of, and could a real-time fraud detection and prevention system have stopped him?

According to the indictment, between April of 2021 and October of 2021, Knigge deposited five fraudulent checks totaling $142,100. These checks included $10K deposited into a Credit Union checking account, a $4,550 check and a $40,000 check deposited into a bank checking account and a $47,550 check and a $40,000 check into a separate Credit Union checking account.

The government says “Knigge obtained $16,000 of the fraudulent funds by transfers or cash withdrawals before the banks determined the checks were fraudulent and returned the funds or froze his accounts.” 

It seems Knigge, a former fraud investigator, may have been aware of batch processes in the core banking system and transferred the funds before any red flags alerted fraud teams at the credit unions and bank.

Since batch processes do not allow for real-time fraud detection and prevention, Knigge had the advantage.

However, this advantage could be put firmly back into the hands of all banks and credit unions by utilizing the real-time fraud detection and preventions system offered by ToolCASE.

See, since ToolCASE’s fraud detection and prevention system operates in real-time, and can alert fraud teams to anomalous transactions in real-time, fraud teams at the affected institutions may have been tipped-off to the fraudulent check deposits and withdrawals, as they were happening.

ToolCASE’s real-time transactional data analysis, which does not wait until data is batched, is completely transforming the fraud detection efforts at American banks and credit unions.

But, as Mr. Knigge may know, far too many financial institutions still rely on legacy, batch driven fraud solutions to help detect and halt financial crimes. Modern fraud prevention requires a real-time threat response. ToolCASE is that response.

Discover how ToolCASE’s real-time, artificial intelligence-based fraud detection and prevention solutions are revolutionizing the industry, and get a full demonstration of its remarkable capabilities, HERE.

Or, read the full story of Steven Knigge’s alleged crimes, HERE

Source: https://rapidcityjournal.com/news/local/retired-fraud-investigator-charged-with-second-fraud-case-in-6-years/article_91eb83ef-80ae-5a49-bf97-2a19b86e9635.html