Bank Fraud Prevention & Bank Compliance
The banking industry is obliged to design a financial crime risk management operation that protects them from increasingly sophisticated bank fraud attacks while enhancing their ability to comply with mounting regulatory pressure.
Immediately verify the authenticity of identification to stop crime before it starts with a quality multi–layer bank fraud prevention program that detects crime instantly.
Fraud is a problem that costs more than $221 billion worldwide and is steadily increasing every year. Bank fraud prevention includes counterfeit money, fake money orders & cashiers checks, and fraudulent or stolen credit cards - all of which affect the bottom line in an industry that is already struggling to recover from a rough economy and multiple levels of bureaucracy. In addition to fraudsters who use fake identification documents to open deposit accounts used to launder illicit funds, they also access funds in other people’s accounts. In 2008 alone, Javelin and Associates reported that existing account fraud totaled more than $31 billion and that figure continues to climb. Such losses make it hard for banks to increase their profits and have contributed to many bank closings.
Banks Issue Credit with Confidence
Banks rely on the majority of their revenues by issuing credit. Many branch employees receive bonus compensation for meeting or exceeding quotas for the sale of new credit accounts. Credit cards, home loans, equity lines of credit, business loans, student loans - this aspect of the retail banking operation is vital. It is also the leading area of fraud within the banking industry. Identity fraud and the rise of loan/mortgage fraud very strongly affects the profitability of the industry as a whole.
Banks Validate Identification & Empower their Compliance Initiatives
Banks are the largest issuers of credit; consequently, they must comply with an array of regulatory requirements designed to help validate who they conduct such credit transactions with. Examples include the Fair Credit Act, the “Red Flag Rule” mandates associated with the Free and Accurate Credit Trade Act, and the requirements under the Bank Secrecy Act (BSA) to create a Customer Identification Program. These combined legislative directives dictate that issuers of credit must proactively involve themselves in the fight against identity theft by creating and implementing procedures, documented with step–by–step instructions, for how to validate ID documents of any individual applying for and being issued credit, and to maintain records of such applications for as long as 5 years. The BSA and the FTC also require that such records be maintained securely.
Fraud Fighter™, a division of UVeritech, has an in–depth understanding of the challenges that banks are facing and have successfully designed bank fraud prevention solutions that enhance financial institutions’ financial crime operations. By employing Fraud Fighter’s™ proven proprietary product solutions that lower bank fraud related theft, leading institutions have also shown increases in profits and compliance levels as a result of having an integrated solution comprised of easy to use, inexpensive and reliable protection controls that stop theft before it can begin.