- There are approximately 330 million open DDAs in the United States, according to the Aite Group.
- $969 million in deposit account fraud was committed in 2006, according to American Bankers Association (ABA) Deposit Account Fraud Survey Report 2007.
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Financial Services
Consumer Deposit Fraud Prevention
Prevention of deposit fraud is one of the largest challenges facing financial services organizations today. Every day, there are perpetrators among us attempting fraudulent activity that impacts the DDA (demand deposit accounts). Whether a new DDA account is opened in-branch or online — or an item is presented via the teller window, phone, ATM or online — there is always potential risk of attempted forgery, counterfeiting, alterations, paperhanging or kiting.
By providing our participants with a cross-institutional view, as well a single view of fraud activity across lines of business, Early Warning is able to accelerate the speed with which current and accurate information is integrated into organizations’ decision processes. As a result, organizations are better able to protect their customers and provide targeted customer services.
Account Opening and Funding
New account fraud cost the financial services industry $14.7 billion in 2007, and cost victims $1,066 per case, according to the 2008 Identity Fraud Survey Report by Javelin Strategy & Research. To prevent such monumental losses and protect their customers, financial institutions need to be able to screen new DDA applicants for a prior history of fraud and/or account abuse, as well as perform identity verification and compliance list screening. In addition, verifying a funding account at another institution reduces the fraud risks associated with new accounts.
Early Warning solutions deliver superior analytics and advanced capabilities, including identity verification, account history and account owner authentication, to help organizations stop fraud at the door.
Account Lifecycle Monitoring
During the life of a DDA, fraud and losses can occur at any time. Financial institutions are continually challenged with preventing fraud related to deposit transactions.
Early Warning deposit solutions provide advance notification of high-risk deposits, as well as verify an account’s existence and assess the risk associated with accepting and processing an item. These solutions enhance productivity by saving time and unnecessary losses while also helping financial services organizations maintain a high level of customer service.
For more information on how Early Warning can help prevent deposit fraud or identity fraud, please see DEPOSIT CHEK® service and IDENTITY CHEK® service or contact us.
