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Credit Unions Cut Check Fraud Nearly in Half with Omnichannel Partnership Solution

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Credit Unions Cut Check Fraud Nearly in Half with Omnichannel Partnership Solution

New Case Study Explores the Benefits of Technology Partnership Between Providers, AFS and Alogent

PR Newswire

GREENSBORO, N.C., Aug. 21, 2018 /PRNewswire/ -- Advanced Fraud Solutions (AFS), a leader in fraud prevention services, and Alogent, an end-to-end payment processing solutions provider, today announced the release of a joint case study, Fighting Check Fraud in Real-Time. The case study explores how AFS's TrueChecks® in conjunction with Alogent's ImagePoint Hub significantly reduced check fraud losses at two financial institutions, bolstering their omnichannel protection, simplifying check decisioning and lowering fraud losses to members and the FIs.

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Check fraud is one of the most common forms of fraud, accounting for 35% of industry fraud losses1. And with the growing popularity of new deposit channels – particularly mobile deposit – fraudulent deposits to exploit paper checks are on the rise again. To combat check fraud across all deposit channels, AFS and Alogent formed a strategic partnership to provide a real-time, omnichannel check fraud solution for financial institutions. As a result, two of the first credit unions to implement the solution experienced a significant reduction in check fraud losses as well as improved member experience associated with better check decisioning.

"When check fraud hits a credit union, it's the members who are ultimately defrauded," said Carol Nault, Executive Vice President and Chief Operating Officer, Summit Credit Union (Greensboro, NC), who participated in the case study. "After implementing TrueChecks®, the rate of checks returned due to NSF decreased nearly 50%. In our experience, adding additional fraud protection tools and applying the same standards across capture points can significantly reduce check fraud losses." 

"Check fraud is a persistent threat to banks and credit unions," said Ted Kirk, Director of Industry Partnerships, Advanced Fraud Solution. "By partnering with Alogent, we were able to create significant fraud savings for our mutual customers, providing them with an integrated, real-time check fraud solution that addresses both in-branch and remote deposit capture points."

The joint solution, which draws on the TrueChecks® database containing over ten-years of data from contributing institutions, allows banks and credit unions to mitigate fraud in real-time, leveraging: 

  • A vast fraud database compromised of data from a large network of financial institutions, item processors and optional third-party sources
  • Real-time responses on counterfeit, NSF, Closed Account, Duplicate and other fraudulent items
  • Easy API-based integration into existing and familiar workflows
  • Decisioning with Reg CC-recommended action and associated risk

About Advanced Fraud Solutions
Advanced Fraud Solutions was founded in 2007 with the simple mission to help financial institutions and businesses prevent fraud by utilizing our comprehensive private cloud-based software solutions at the front line and in the back office. Every day, our innovative fraud prevention tools help banks, credit unions, and merchants of all sizes eliminate losses and safeguard their financial assets, providing the level of protection that today's customers demand. At Advanced Fraud Solutions, we know the best way to fight fraud is to prevent it. Learn more at www.advancedfraudsolutions.com.

About Alogent
Alogent provides proven, end-to-end payment processing, content management and digital account opening solutions to financial institutions, currently including over 2,200 credit unions, community and regional banks, and some of the largest national and international institutions. Our solutions are versatile, scalable, user-friendly, and exceptionally stable. Because of our relentless focus on innovation, our clients consistently exceed their productivity, financial, and customer experience goals. Learn more about the new Alogent—a successful merger between the former Bluepoint Solutions and the former Alogent Corporation—at www.alogent.com

  1. American Bankers Association, "ABA Benchmarking and Survey Research: 2017 Deposit Account Fraud Survey Report" (January 2018)

 

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SOURCE Advanced Fraud Solutions

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