Check Fraud Prevention
Apply the latest industry leading Adaptive Behavioral Analytics to one of the oldest financial crimes, Check fraud.
And achieve a fraud catch rate >80% at a 2:1 false positive ratio.
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The underlying flexibility of ARIC™ for Payments provides the ability to ingest additional third-party Check related data, view Check images directly within the alert and case management user interface, and ingest Check data via API or batch. ARIC can make use of data across all points of the transaction life cycle, including device data for mobile deposits, location data for branch and ATM deposits, and signals from other FIs and processors on in-clearing checks.
Together, our cutting-edge analytics and flexible platform configuration enable operations teams to manage the check float and hold process through confidently expediting funds availability on genuine activity, while focusing on the truly high-risk reviews, both driving efficiencies for your operations team, and further enhancing your customer’s experience.
ARIC for Payments’ support for all payments channel methods powers a holistic view of payment activity allowing your organization to quickly diagnose and mitigate fraud attacks jumping across channels and payment types.
Customer had unperforming analytics across all payment types and channels. Selected ARIC for Payments with the plan to phase in all payment types over time. Commenced with their highest priority payment types, one being Checks.
The ARIC for Payments solution was implemented to:
ARIC for Payments solution successfully identified over 80% of Check fraud at a 2:1 false positive ratio.
Powered by our patented, award-winning invention, Adaptive Behavioral Analytics technology and unique ARIC Model Definition Language (AMDL), ARIC™ for Payments offers a holistic solution to protect you and your customers from Check fraud typologies such as Check washing, counterfeit Checks, Check kiting schemes, and Check scams.
ARIC for Payments is designed to perform optimally within real-time environments. As a result, you can provide check originating from online banking systems to ARIC’s API and receive a real-time risk response in 10s of milliseconds. Subsequently, utilize the output to block transactions or orchestrate additional downstream actions within your payments ecosystem. With ARIC for Payments you will be able to:
ARIC is not limited to real-time processing and risk assessment. Batch processing for Checks such as those originating from receiving financial institutions, enables ARIC to receive and risk assess asynchronously while still utilizing patented Adaptive Behavioral Analytics unique to the solution.
Machine learning is revolutionizing the payments industry and Check fraud prevention is no exception. ARIC for Payments is leading the way with its Adaptive Behavioral Analytics, which allows for analytics to be tailored at the individual customer level and adapt to the changes of your customers. Make use of stateful customer profiles that adapt in real time, making the prevention of common types such as kiting or washing simple.
ARIC provides out of the box analytics that allow for you to tailor to your Check fraud prevention strategy in a way that aligns with businesses goals.
ARIC for Payments is designed with the needs of a modern fraud analyst and analytics creator in mind. The extensive suite of native features to the platform allows for the optimization of your data, operations, and analytics team. ARIC comes standard with:
Industry experts estimate that despite the slow decrease in Check payment volume, Check fraud will reach $24 billion in 2023 and continue to grow.
The increase of Check use within the COVID-19 pandemic and associated relief payments led fraudsters to shift their focus on exploiting the payment type and they still today continue to capitalize on the vulnerabilities identified.
Featurespace has witnessed a major shift of US based banks focusing on Checks as a priority area to utilize the adaptive behavioral analytics that underpin their ARIC for Payments solution due to a sharp increase in fraud losses.
The adaptive behavioral analytics that underpin the ARIC Risk Hub have been deployed to great success.
A recent deployment of a leading US-based Credit Union achieved a fraud catch rate >80% at a 2:1 false positive ratio.