Jackie DeAngelis, co-host of “The Big Money Show,” speaks with Rohit Chauhan, vice president of artificial intelligence at Mastercard, about the company’s efforts to combat credit card fraud.
Although it’s rare to see someone cutting a check at a grocery store these days due to the widespread use of credit and debit cards, checks are still a commonly used payment method, and check fraud is common. has been increasing explosively in recent years.
The Financial Crimes Enforcement Network (FinCEN), the U.S. Treasury Department’s investigative agency, reported last year that there would be more than 680,000 reports of check fraud in 2022, nearly double the number of reports from the previous year.
According to FinCEN, the Treasury Department’s investigative arm, the United States has seen a sharp increase in check fraud in recent years. (license/image)
“The fight against check fraud is a race against evolving criminal tactics,” said Becky LaPorte, strategic advisor at Datos Insights. “Fraudsters are taking advantage of this and are using sophisticated tools at their disposal. It is essential for local financial institutions to implement innovative technology solutions that protect customer funds without impacting the customer experience. ”
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The methods scammers use to obtain checks vary from stealing checks through normal day-to-day business transactions, stealing check payments from the mail, and even obtaining customer credentials. Phishing scam This allows them to view the image of the check online and potentially create a counterfeit copy of the consumer’s check.
Check fraud is on the rise because criminals can access checking account information without the physical check. (license/image)
As banks and credit unions scramble to fight crime, financial crime prevention firm Abrigo is rolling out an artificial intelligence-powered fraud prevention platform for financial institutions to combat crime as fraudsters become more sophisticated in the digital age. announced that they would fight against it.
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Abrigo’s AI platform uses step-by-step verification capabilities to identify tampered goods, counterfeits, and fraudulent checks at a higher rate. The company says the new tools can be tailored to an institution’s needs, automating processes, streamlining workflows to increase efficiency and prioritizing higher-risk activities.
“Regional financial institutions have been dealing with tight margins since mid-2022,” Abrigo CEO Jay Blandford told FOX Business. “Fraud adds to this margin pressure and negatively impacts reputation and customer experience. Even as losses from fraud increase, financial institutions are dedicating staff and resources to prioritizing check fraud protection. The Abrigo poll shows that there is limited capacity to invest.”
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Abrigo, a financial crime prevention company, leverages AI to fight check fraud. (Stiphon Chandeen/iStock / iStock)
In a pilot program last year, the Abrigo Fraud Detection platform was able to accurately identify 93% of all fraudulent checks at local banks, totaling more than $330,000 in potential fraud losses avoided.
“This platform is a game-changer in fraud detection,” said Ravi Nemalikanti, CTO of Abrigo. “We leverage the power of AI and machine learning to deliver unparalleled results for our customers, and so far we have received overwhelmingly positive feedback regarding its performance and ease of use.”
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Abrigo Fraud Detection’s check fraud detection capabilities officially launched last week, and the company plans to expand fraud detection across other transaction types throughout this year, including wire and Federal Reserve’s FedNow.
FOX Business’ Erica Lamberg contributed to this report.
