{"id":116,"date":"2023-04-18T21:14:34","date_gmt":"2023-04-18T21:14:34","guid":{"rendered":"https:\/\/rembrandt.virtuabrands.com\/?p=116"},"modified":"2023-04-18T21:14:34","modified_gmt":"2023-04-18T21:14:34","slug":"check-fraud-losses-may-have-hit-34-4-billion-in-2022","status":"publish","type":"post","link":"https:\/\/rembrandtai.com\/news\/check-fraud-losses-may-have-hit-34-4-billion-in-2022\/","title":{"rendered":"Check Fraud Losses May Have Hit $34.4 Billion In 2022\u2026"},"content":{"rendered":"

But Can This Ai Technology Finally Help Put an End to It?<\/strong><\/p>\n

Fraud and risk teams at banks and credit unions have had enough. Since at least 2020, there\u2019s been a parabolic increase in all forms of bank fraud, resulting in a drastic increase in mitigation and resolution costs.<\/p>\n

But, while institutions have been focusing much of their fraud detection resources on sophisticated schemes (and often failing at detecting these), criminals have begun reverting to an \u201cold school\u201d method of stealing depositor money: Check fraud\u2026<\/p>\n

And it\u2019s growing out of control.<\/p>\n

The FBI has previously estimated that\u00a0annual<\/u>\u00a0losses from check fraud have totaled roughly $18.7 billion, with more than a million fraudulent checks floating through the banking system, every day.<\/p>\n

Yes, over a million fake checks a day\u2026. Most of which pass as legitimate.<\/p>\n

However startling these figures may be, they represent check fraud data prior to last year. The new data for 2022 is far more frightening, and the ramifications for banks and credit unions far more severe.<\/p>\n

The Financial Crimes Enforcement Network (FinCEN) just reported that in 2022 alone, the banking industry saw a remarkable 84% increase in check fraud. This means potential losses may have topped a whopping $34.4 billion last year.<\/p>\n

An 84% increase in check fraud is astonishing. Astonishing even for those institutions who may be handling hundreds of fake checks every day.<\/p>\n

Of course, risk and fraud teams at banks and credit unions are well aware of this drastic rise in check fraud and have been pouring in new resources and expensive man-hours to deal with it.<\/p>\n

As a result, the entire industry has grown exhausted from combating a seemingly unwinnable war against check fraud. Clearly, the current tools they\u2019re using to fight it are not working.<\/p>\n

However, a real-time artificial intelligence system called RembrandtAi, developed by\u00a0ToolCASE LLC<\/a>, may be the solution the entire industry has been anxiously waiting for. It\u2019s a solution that, unlike the investigation of post-transactional batched data, can detect potentially fraudulent checks at the point of deposit\u2026<\/p>\n

Meaning investigators don\u2019t have to wait for the batch data to be processed before being notified of a potential threat. Instead, they can be notified in real-time.<\/p>\n

We\u2019ll discuss this breakthrough solution, and how it can help put an end to your mounting check fraud losses, momentarily.<\/p>\n

But first, why has check fraud recently become such a major issue, and potential disaster for banks and credit unions?<\/p>\n

Well, the reasons are threefold. As discussed earlier, many financial institutions have put their investigatory resources towards detecting sophisticated financial crimes.<\/p>\n

Many criminals know this and have switched their efforts to a fraud that has, until now, largely been overlooked or gone undetected by risk and fraud teams.<\/p>\n

Secondly, because of the demands on law enforcement, roughly 75% of check fraudsters are not pursued or prosecuted, giving them near free reign to conduct their crimes.<\/p>\n

Finally, because most check fraud investigations occur after the fraud team has been notified in post-transactional data, fraudsters have plenty of time to steal.<\/p>\n

They have the motive, the opportunity, and a lack of consequences. It\u2019s the perfect mix that any criminal would take advantage of.<\/p>\n

Now, there are a number of forms a check fraud can take, and here are a few of the most common ones your institution is probably experiencing:<\/p>\n