Fraud Management & Cybercrime , Fraud Risk Management , Video

New Tools and Integration Are Detecting Check Fraud Faster

The false positive rate for detecting check fraud typically is very high because it's such an analog process. To detect fraudulent checks faster, banks need to pair their legacy detection capabilities with image analysis solutions, says Trace Fooshee, strategic adviser with Aite-Novarica Group.

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"Detecting check fraud is really challenging because banks have to differentiate between genuine handwritten documents and falsified handwritten documents," Fooshee says. "It is not something that lends itself easily to automation, and detection tools are usually very costly."

Banks typically face a 100-to-1 false positive rate, but image analysis solutions can make a substantial difference, he says. "They are also able to reduce the false positive rate further if they integrate legacy systems and image analysis systems with risk engine platforms," he adds.

In this video interview with Information Security Media Group, Fooshee discusses:

• Why check fraud is sharply increasing;
• Why check fraud is now in the news and a focus of the banking community;
• Strategies for identifying and stopping fraudulent checks.

Fooshee, who leads the anti-fraud practice at Aite-Novarica Group, previously headed fraud strategy at SunTrust Bank and was a senior manager at Deloitte's transaction and business analytics unit.