The unprecedented volume of government-issued payments has created new opportunities for fraudsters seeking to exploit weaknesses in the deposit process. As banks and credit unions process increasing numbers of Treasury-issued checks, the need for effective treasury check validation has become more important than ever. Financial institutions must balance the need for fast funds availability with the responsibility to identify fraudulent items before losses occur.
Today’s fraud landscape includes counterfeit checks, duplicate deposits, and social engineering schemes that target both consumers and financial institutions. By implementing strong check fraud prevention measures, leveraging treasury check verification tools, and enhancing mobile deposit security, organizations can better protect themselves against evolving fraud tactics while maintaining an efficient customer experience.
Advanced Fraud Solutions (AFS), the leader in deposit fraud detection software, today announced a new report, Guide to Treasury Check Validation, on the latest deposit fraud tactics targeting U.S. Treasury checks. Over 128 million stimulus checks have already been issued by the IRS, paying out over $218 billion, providing much needed relief. The flow of Treasury checks has also corresponded with an uptick in check fraud targeting banks and credit unions.
Click here to download the report
AFS’ report details several of the most frequently deployed deposit fraud tactics being used on Treasury checks, including social engineering, duplicate deposits and counterfeit checks, as well as best practices on how to secure checks across deposit channels. AFS also highlights new enhancements to TrueChecks® – the industry’s leading check fraud database and comprehensive check fraud prevention solution – including a direct link to the U.S. Department of the Treasury database, giving financial institutions the ability to validate Treasury items in real-time or in batch, across their deposit channels.
“Financial institutions face two big challenges when it comes to properly validating these Treasury checks: processing at volume and processing across channels, including remote and mobile deposit,” said Ted Kirk, VP of Strategic Partnerships at AFS. “The volume of Treasury items currently hitting banks and credit unions is historic. This influx will also represent a test on the security of remote and mobile deposits, as more customers opt for safer, more socially distanced ways to bank.”
To secure Treasury items, and protect financial institutions from deposit fraud, the report details several key features of the TrueChecks platform, including:
- How TrueChecks make check decisioning easy by displaying Regulation CC-recommended actions and associated risk at the moment of presentment;
- How TrueChecks can integrate and connect seamlessly into most core systems, or can be setup via a customer API, in as little as 48 hours;
- Details around the TrueChecks database, which, in addition to the Treasury link, features over 10 years of valuable fraud data from thousands of banks, credit unions, and processor sources;
- How TrueChecks works across deposit channels, including at the teller line, back office, remote and mobile deposit, and more.
As Treasury payments continue to move through the banking system, financial institutions need reliable methods for identifying fraudulent items across every deposit channel. Effective treasury check validation can help reduce risk, improve operational efficiency, and support faster decision-making for frontline staff and back-office teams.
Combining real-time verification capabilities with comprehensive fraud intelligence strengthens check fraud prevention efforts and helps institutions address threats ranging from counterfeit checks to duplicate deposits. A proactive approach to Treasury check security remains essential for protecting both financial institutions and their customers.
To download the report, or learn more about TrueChecks, click here.
About Advanced Fraud Solutions
Advanced Fraud Solutions was founded in 2007 with the simple mission to help financial institutions prevent fraud in real-time by utilizing our comprehensive private cloud-based software solutions at the frontline and in the back office. Every day, our innovative fraud prevention tools help banks and credit unions 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 Advanced Fraud Solutions.
