How to Improve Your Check Fraud Score
Check fraud scores are an excellent way to reduce transaction fraud, identify risky customers, and weed out fraudulent activities. The score can help you make decisions on whether to allow or deny access, trigger a manual review, or add additional verification. Fraud scoring systems are flexible and can be customised to fit your risk appetite. They can be adapted to new fraud trends as they emerge, so you’re always getting the best protection.
Check Fraud Score: Tools to Assess Risk
The COVID-19 pandemic has given a resurgence to old school methods of crime, including check fraud. Fraudsters are taking advantage of the increased availability of checks, the ability to cash them, and the relative ease to wash and resell them as valid. This fraud can be very lucrative for fraudsters and a pain point for financial institutions.
Fortunately, well-implemented technology and education are key to combating this growing threat. Businesses should make sure their employees know the red flags of a bad check, and that they follow proper check handling procedures. They can also help protect themselves by working with reputable check verification companies to verify that the payee and amount match their records.
Banks can further reduce their exposure by implementing positive pay automation. This is where a check is verified electronically before it’s cashed. This helps to confirm that the details on a check match those on file and can help prevent false positives, such as when a fraudulent account is created in order to deposit a counterfeit or stolen check.