Check fraud is surging and two-thirds of financial institutions admit it’s one of the hardest fraud types to detect.
Featurespace for Check Fraud is part of our award‑winning payment fraud detection platform, helping financial institutions detect both inbound and outbound check fraud across all channels. Powered by self-learning, behavior-based AI, our software can track small shifts in your customers’ footprints. This means you can detect anomalies faster and stop fraud sooner, whether it’s check deposit, on-us, or in-clearing checks. When something’s not quite right, you’ll know. Fast.
With check fraud estimated to have exceeded $24 billion in 2023, this traditional payment method has been growing into a prime target for criminals1. Discover how criminals are evolving their tactics in our latest research report: 'Reinventing Check Fraud.'
Legacy defenses are falling short
Manual reviews and legacy tools can miss today’s complex fraud, potentially driving losses, inefficiencies, and eroding customer trust.
Operational friction is driving up false positive rates
Legacy check float and hold processes delay access to legitimate funds, frustrate customers, and strain already stretched fraud teams.
Featurespace for Check Fraud uses self-learning, behavior-based AI analytics, combined with a 360-degree view of any relevant data points to understand behavior at a customer level so when something’s not adding up, you’ll know. Fast.
In this episode of Scam Detectors, host Jane Wakefield explores the persistent and evolving threat of check fraud.
Checks remain a core part of the financial system in North America, creating fertile ground for increasingly sophisticated scams. This episode sets out to explain how check fraud works today, why it is on the rise and who is most at risk.
Listen to the full episode wherever you get your podcasts.
Manual reviews and legacy tools can miss today’s complex fraud, driving losses and inefficiencies and eroding customer trust. With the Featurespace Check Fraud solution, you’ll have the tools to better detect new and developing types of fraud.
Check washing: Identify suspicious alterations of signatures or payment amounts through image forensics powered by deep learning.
Counterfeit checks: Detect anomalies through check stock validation, including alterations to MICR numbers, payer name and address or the memo line. Check image forensics marketplace enables choice of underlying imaging provider.
Check kiting: Uses adaptive analytics to assess withdrawal and deposit activity, detecting potential check float exploitation.
Check deposits: Singular, seamless integration allows for deposit monitoring across all channels. Adaptive behavioral profiles can alert against suspicious value, velocity and withdrawal activity across deposits and other payment channels.
In-clearing checks: Featurespace's adaptive behavioral profiles can allow for easier identification of multiple fraud risk signals such as high-dollar values, unusual check sequencing or high check payment velocity.
The Featurespace Multi-tenancy capability gives issuers and acquirers control over the experience available to your customers.
How one credit union identified over 90% of check fraud2
Challenge
Customer had underperforming analytics across all payment types. Customer selected Featurespace with a plan to phase in all payment types over time. They commenced with their highest priority payment types, one being checks.
Curious about The Featurespace Platform and what it can do for your business? Let us walk you through our capabilities, strategies and solutions.
1 Orbograph, OrboGraph check fraud Detection Using Image Forensics, July 2024
2 Represents the Featurespace for Payment Fraud solution check deposit transaction volume marked as fraudulent across June 2023 to August 2024 for the credit union.