As fraudsters leverage modern technology to enhance the sophistication, efficiency, and success rates of fraud attacks, you’re left on the front lines to find solutions and answers.
Let’s take a look at three leading types of fraud and how you can protect your bank from pervasive threats while putting your customers first.
1. Rise of check fraud: Despite a significant decline in check usage, check fraud remains a top concern for banks. Fraudsters have evolved their tactics, using methods like stolen postal keys and counterfeit checks that bypass traditional security measures. To fight back, you can implement tools such as Positive Pay, which verifies presented checks against a list of issued checks, ensuring only legitimate checks are processed. Outside of Positive Pay, maintaining a 360-degree view of all transaction channels is essential for identifying typical account activity and spotting anomalies.
2. Combatting scams: While check fraud is a top concern, scams rank as the next greatest threat. In 2024, consumers in North and South America lost an estimated $13.8 billion to scams alone, with many incidents going unreported. Ensuring you have a real-time enabled monitoring system with transaction interdiction is key to detecting fraudulent transactions as they happen – allowing you to act quickly and minimize losses. By monitoring activities as they occur across channels, you’re enabling immediate detection and response to suspicious transactions outside of your customers’ normal activity. Transaction interdiction also allows your system to halt suspicious transactions before they’re completed, allowing you to prevent significant losses.
3. Pioneering the fight against fraud with AI and machine learning (ML): While the bad guys will try to leverage Generative AI, not all AI serves malicious intent. In fact, AI/ML can provide dynamic, adaptive solutions to identify and combat fraud. As transaction volumes increase and fraud tactics evolve, your systems must grow and adapt accordingly. Modern detection systems enabled with AI/ML models are agile and responsive to emerging trends as they develop. By analyzing transaction patterns and building detailed profiles of accountholder behavior, these systems can detect anomalies indicative of fraud. To further strengthen your defenses, AI/ML systems also leverage expanded threat intelligence that goes beyond the activities within a single bank. By accessing broader data on emerging trends, your systems can prepare for and prevent new threats before your customers are targeted – putting you one step ahead.
Jack Henry Financial Crimes Defender™: A Comprehensive Solution
To combat these risks, you need a fortress of defenses built to anticipate and detect fraud at the speed of transactions.
Jack Henry Financial Crimes Defender is a next-generation, cloud-native platform built to help you manage and automate fraud processes in real time. Integrating fraud and BSA/AML under one platform, this revolutionary solution combines AI/ML with advanced fraud detection features and provides a comprehensive view of financial crimes – breaking down silos to offer faster, smarter protection.
Unlock strategies to turn reactive responses into proactive strikes, fortify your defenses, and win the battle against evolving fraud with Jack Henry™.
