Banking Systems

Detecting Bank Fraud to Keep Clients’ Investments Safe

The task of detecting bank fraud is difficult. It requires you to be constantly alert for fishing activity that fraudsters will try to do while you are not particularly paying any attention. However, with good fraud alert systems, you won’t have a really difficult task of detecting fraud. Even though fraud alert does not include violence, it is still considered a serious crime. This particular white collar crime may come in two different forms: deliberate deception or misrepresentation. Both forms are done by fraud criminals to gain an advantage over unsuspecting establishments. This means that your bank will stand to lose a lot when it becomes the target of fraud perpetrators.

What are the most common forms of bank fraud?

Basically, white collar criminals commit the most common fraud: falsifying checks. Usually, they alter the figures on the check. For example, a $100 sum can be changed to $1100 just by adding 1 before the one in the hundred. Or, the fraudster may get a check from somebody and forge that person’s signature. Additionally, other fraud criminals may assume the identity of another person in order to get cash from that person’s account. These examples are doable if the bank tellers are not given an alert for a potential fraud as quickly as possible.

What is a good fraud solution for banks?

The most reliable way to keep fraud artists a safe distance from your bank is to be ahead of them by several steps. This means that bank staff and personnel should be well-versed in all the possible tricks that white collar criminals may use to siphon money from a banking institution. It is safe to say that bank tellers and bank managers who are armed with the right knowledge are better in detecting and stopping fraud before it happens.

What are things that banks should be aware of when dealing with clients or scam artists pretending to be their clients?

As soon as someone comes in bearing a check, it is very important to verify check images, look for any alterations on the layout, and looking into the numbering. As such, the bank teller who receives the check should make sure that all the right details are on the check. First, he must make sure that the check actually belongs to the bank, hence, it is authentic. Then, he must see if the date, the name of the payee, and the numbers are all okay. After that, he must compare the signature on the check with the actual signature of the owner of the checkbook.

Signature verification

Yes, signature verification is very important. As such, a signature authentication software should be used to verify the authenticity of the signature that appears therein. This is a reliable software that banks use to give them the chance to check signatures fast and with accuracy. In short, the software alerts tellers on possible bank frauds as soon as possible. And so, banks should really consider the matter and convert signature cards to electronic cards. Electronic records provide bank tellers the convenience and the accuracy of checking signatures on a check with much faster results. What’s more? The signature authentication software can also give a confidence rating for the authenticity of the signature.

To cut a long story short, detecting bank fraud is easy when banks use the latest technology. As such, don’t forget to equip your bank with the software so that you can do a great job of protecting your clients’ investments from people who want to get their hands on the money using illegal means.

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