Preventing Bank Fraud to Protect Your Bank

Bank fraud is similar to a disease-causing microbe. It watches out for weakness in the system and that’s where it enters. A person committing fraud has no respect for businesses he cons. Neither does he have respect for the effect of his actions on the employees he toys with when committing the fraud. In fact, the only thing that he considers important is reaching his goal.

Now, to keep up with the new advances in banking systems, fraudsters do their part of innovating their scheming ways by making bad checks pass through bank scrutiny or pretending to be clients of banks. The moment they sense that the upper management of the banks they are conning begin to suspect their activities, they will simply transfer to a new area armed with a new scheme to get through security checks. However, this does not imply that the fraud detection system in your bank is useless. No. People committing fraud are just on to which community banks are not too strict in their verifications processes or just plain lax in putting in measures to prevent bank fraud. Therefore, it lies upon the management team in each bank to guard their interests and their client’s investments. 

You can make sure you are onto the main ways of protecting your bank from fraud criminals:

1. Keeping fraud from happening through fraud prevention systems

2. Catching fraud as soon as they occur

In order to protect your bank from fraudulent activities including scams using bad checks, you have to make sure that you have a meticulous detection workflow. This system means that anomalies in transactions are easily detected and that tellers are alerted when a potential fraud will occur or even as soon as it occurs. In short, the staff should be trained adequately regarding the goals of the bank in fraud detection and the proper use of the workflows.  

Getting on to the games of fraud criminals

Generally, technology-savvy criminals and hackers make use of software to get into a business system. With the use of fraud detection software potential crimes are prevented and actual crimes are blocked. Even though it takes more than the right software to detect fraud, the time and effort spent to prevent white-collar crime is one good way to start. In this sense, when you use the right tool and the right staff, detection of fraud can be started to combat different kinds of bank fraud. 

Signature Verification

Your bank can use electronic signature verification software that can swiftly compare different variations of a signee’s signature. This gives the teller an alert after the bad check is scanned and the software reports a potential forgery. This is really helpful for bank tellers, office personnel and bank management.

What are the verification processes conducted by the software?

1. Inspect applicable signature images

2. Compare signature image on check with the signature database of the bank

3. Provide a confidence score

4. Emphasizes vulnerable cases of fraud in the workflow

Check Image Verification

Another feature in the fraud alert system that you can install is the automated check image analyst system. This software will verify check images. It does this when it reviews, compares, and detects any counterfeit or changes in the bank’s checks. Further, it immediately alerts bank personnel to scrutinize the check in cases when any of the set rules is broken. 

This particular fraud detection software focuses on five main points:

a. Details of the payee

b. Signature line placement

c. Standard font and layout

d. Account serial number

e. And the check size

The fraud detection software is able to check the authenticity of the check. As such, the smallest and the most unnoticeable alterations will be detected. Using this fraud management for tellers that can verify check images during actual scanning of the check makes these fraud alert systems great for detecting crime as it happens.

 

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