fraud presentation


2*number of payments (billions)

Change in Check and Debit Card Usage

Source: 2010 Federal Reserve Payments Study


3

Annual Check Fraud Losses

Source: ABA Deposit Account Fraud Report

*estimated industry losses (millions)


4

Source: ABA 2011 Deposit Account Fraud Report

*actual losses (millions)

Industry Estimates for Check and Debit Fraud Losses


5*number of payments (billions)

Change in Check and Debit Card Usage

Source: 2010 Federal Reserve Payments Study


6


*based on actual $ amount of losses

Check Fraud Losses by Type of Fraud


7


*based on actual $ amount of losses

Check Fraud Losses by Type of Fraud

60% of losses could be reduced by real-time screening.


8

Best Practice 1:

Screen for fraud in real-time


9


*Day 1 is the first day after deposit is made

RDI Timelines for BOFD


10




43% of deposited checks at Mid-Sized FIs are protected by a statutory Reg CC hold.

41% of checks at Community FIs are protected.


11




57% of deposited checks at Mid-Sized FIs would be protected by an extended hold.

59% of checks would be covered at Community FIs.


12

Statutory Hold Extended Reg CC Hold

Day 1 Teller applies Statutory holdLarge Deposits, New Accounts, Exceptions

(NSF & Return History, New Account, IRDs, Doubt of Collectability)

Day 1

Day 2$200 next-day availability

BOFD protected by extended hold

Day 2

Day 3

Balance of funds available.BOFD at risk

Day 3

Day 4 Day 4

Day 5 Day 5

Day 6 Day 6

Day 7 Exception, Large Deposit holds released Day 7

Day 8 Day 8

Day 9 New Account hold released Day 9

Reg CC Hold Summary


13

Best Practice 2:

Apply holds consistently


14

Best Practice 3:

Integrate duplicate detection into check processing


15

Best Practice 4:

Approach fraud cooperatively


16

Best Practice 5:

Integrate fraud screening with your existing solutions


Summary of Best Practices

‣ Screen for fraud in real-time

‣ Apply holds consistently

‣ Integrate duplicate detection into check processing

‣ Approach fraud cooperatively

‣ Integrate fraud screening with your existing solutions


18

Thank You

Andrew Tilbury

Bluepoint Solutions

[email protected]

@andrewtilbury

760-560-5651

fraud presentation

Economy & Finance

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fraud screening

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