How to Prevent the Fraud Threats Most Likely to Emerge in an Uncertain Financial Environment
When uncertain or tumultuous times arise, you can be sure fraudsters are ready to pounce.In the wake of several banks collapsing in March, multiple fraud schemes are likely to emerge.
Here are some fraud and scams that we expect to surface.
Scams
WHAT IT IS:
Fraudsters may take advantage of unsuspected consumers and businesses by contacting them pretending to be from the FDIC, failed banks, or financial institutions taking over failed banks.
COUNTERMEASURES:
- Multi-channel client Education and Fraud Awareness Campaigns e.g. Web, Mobile, Letter, Email, etc.
- Interdiction pop-ups on online and mobile channels
Kiting
WHAT IT IS:
Consumer or Commercial Clients with liquidity constraints may attempt to Kite checks across several Financial Institutions to gain a few days of liquidity by taking advantage of the banking float
COUNTERMEASURES:
- Returned Check Reports
- Near time Check Monitoring
- Limits on Cash Advances
- Returned Check Fraud review teams
Phishing
WHAT IT IS:
- Fraudsters may attempt to phish for PII via text or email.
COUNTERMEASURES:
- Phishing awareness campaign exercises within Financial Institutions.
Misrepresentation Fraud
WHAT IT IS:
Consumers, or Small Businesses may misrepresent Income or Employment in order to get credit. Typical examples of altered / false documents, include; W-2, Bank Statements, Small Businsses Sales documents, and Financials.
COUNTERMEASURES:
- Originations First Party Fraud Scores / Models
- Enhanced dues diligence / Document Verification
