Spot Bank Fraud to Protect Clients’ Investments

The task of spotting bank fraud is a huge job. It needs you to be on constant watch for anything fishy that fraud criminals may attempt to do when you do not anticipate it. Now, with quality fraud alert systems, it gets easier to detect their illegal activities. Even though bank fraud does not involve violence, it is still a serious crime. This particular white collar crime may represent itself in two forms: deliberate deception or misrepresentation. Both intend to benefit the fraud perpetrator. To cut a long story short, your band will end up being the target of fraud criminals.

What are the most common forms of fraud committed against banks? 

In general, white collar criminals falsify checks. They commit this crime by changing the figures on the check or by forging the signature of the owner of the checkbook. For example, a mere $100 on a check can be changed to $1,100 by adding the digit one before the numeral. Additionally, anyone who attempts to commit fraud might assume another person’s identity to get cash from the bank. In both cases, the bank teller is put in an uncompromising position of giving out the cash if he is not able to detect fraud in time.

What is a good fraud solution for banks?

The best way to protect your bank from fraud artists is by staying ahead of them. When you provide the staff and personnel with the needed information about all the fraud tricks commonly used by fraudsters, you can be alert for anything fishy going on. This implies that the persons handling money or supervising the work of tellers should also be in on it. When they are, you can bet that they are conscious of all the unscrupulous acts that scam artists may attempt to try and that they can stop these from happening. 

What are some of the things that banking institutions should be careful of when dealing with clients or people pretending to be clients?

When a person comes in with a check, it is vital to verify check images in order to look for any alterations on the layout and the numbers. The bank teller should scrutinize the check to see whether all the details on a valid check are present. Plus, he must find out whether the check is a standard issue of the bank. This is because there are fraudsters who make fake checks and get them accepted as the real thing. When the check is seen to be real, the bank teller should find out whether the information – the date, the name of the payee, and the signature of the signee – are all correct. These are the steps that your bank should take to make sure that the check is legitimate and not bogus.

Signature verification

While doing the verification of the check by the teller, he must use signature authentication software to really make sure that the check belongs to the owner. This software is a powerful tool that banks can rely on in order to accurately compare the signature on the check with the signature on the bank database. Using this technology, it would be easier and faster to detect forgeries. The software is effective because it issues a warning whenever it detects that signature is not real. This is exactly why banks should convert signature cards to electronic records.   Electronic records give bank tellers more time to check a particular signature with the actual signature on the signature card. The signature authentication software can also provide confidence ratings for the legitimacy of a signature appearing on a check.

To conclude, detecting fraud is easier when you use the latest technology. As such, you have to install this system in your bank in order to protect your clients’ investments as well as your profits. 

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