To prevent fraud, everyone should be in the pool
Putting customers first means implementing a system that can proactively spot and stop fraudulent items across deposit channels.
Being reluctant to pool and share data is a shortcoming for security risk. Many payments and financial services attacks use data downstream for other purposes, which extends the fraud risk. Having more data also allows firms to spot potential problems faster.
But in the case of security and fraud prevention, having more information is the best chance to manage and prevent threats. There's an opportunity to add intelligence and develop a more informed fraud prevention strategy.
Financial institutions have the best chance at achieving this end using the most up-to-date fraud data available. The catch is institutions also need to contribute their fraud data to keep the system up to date.
Collecting and sharing fraud data with your fraud solutions provider (if it’s an option) is proven to reduce fraud. By pooling fraud data, and making it accessible in real time, FIs can scan check deposits to identify fraudulent checks before a loss can occur.
As an immediate benefit, sharing fraud data will prevent duplicate fraud attempts. By tapping into up-to-date fraud data, FIs will also benefit from an overall reduction in fraud.
To make the payments ecosystem safer for all, sharing check fraud data is key — for customers, the industry as well as the bottom line.