Preventing Fraud at Your Financial Institution
Right now, Banks and other Financial Institutions are under enormous threat of fraud. In 2018 alone, fraud against bank deposits reached an estimated $25.1 Billion. Up 32% from 2016, with no end in sight.
That same year, check fraud accounted for 47 percent of industry deposit account fraud losses, followed by debit card fraud losses, signature, PIN, and ATM. Fraud losses attributed to electronic banking transactions, including billpay, P2P transfers, wire and ACH transactions also crushed the bottom line of institutions.
The problem is only getting worse. Your institution is at the greatest threat of fraud now than any time in history.
- Chart 1: Fraud against bank deposit accounts amounted to $25.1 billion in 2018, up from $19.1 billion in 2016
- Chart 2: check fraud accounted for 47 percent of industry deposit account fraud losses. 44% of losses from debit card fraud losses (signature, PIN, and ATM) 9% of losses were attributed to electronic banking transactions, including billpay, P2P transfers, wire and ACH transactions.
Who are the fraudsters?
- Insiders/Bank employees
- Organized Crime
- Nation States
- Common Criminals
Your Greatest Vulnerabilities:
- Mobile Devices
- Employee Theft
- Malware and Phishing Emails
- Third-Party Vendors
- Software and Hardware
- Hackers Posing as Clients
How To Best Protect From Growing Bank Losses Due to Fraud:
The single best way to protect your institution from the growing threat of fraud is to implement real-time fraud detection. Many frauds are not detected until after the crime has been committed. With overnight data and transactional batching, criminals have ample time to pull off these costly crimes.
By utilizing real-time fraud detection across all your platforms and data sources, fraudulent activity is discovered as it happens, well before the data is batched. This allows your institution to halt the fraud as it’s happening, preventing enormous monetary loss instantly.
To learn more about real-time fraud detection, visit ToolCASE, the World’s Most Advanced Transactional AI Company. We Stop Crime In It’s Tracks… As it happens.
Sources:
https://www.aba.com/news-research/research-analysis/deposit-account-fraud-survey-report
You Can Stop Fraud Before It Happens And Safeguard Your Retail Bank From Giant Losses
ToolCASE is the world’s most advanced transactional AI company. The retail banking industry’s preferred choice for real-time risk management and fraud detection. ToolCASE catches financial fraud as it’s happening, before the fraudsters can get away with it.
The ToolCASE suite of real-time fraud detection products can help you eliminate costly losses and boost your bank’s bottom line.
And regardless of the size of your institution, small, regional, or large, ToolCASE is here to help.
