Financial institutions are facing growing challenges in protecting their business customers against fraud loss. According to Nasdaq’s 2024 Global Financial Crime report, fraud scams and bank fraud schemes were responsible for $485.6 billion in global losses last year. In the Americas, check fraud accounted for nearly 80% of total global check fraud losses, highlighting the growing threat of check fraud in the United States.
Often, larger corporate customers have the infrastructure to adapt internally, but without the assistance of financial institutions, the small business market segment remains vulnerable. Institutions can assist their business customers by implementing innovative solutions that tackle fraud prevention. For instance, institutions can partner with a third-party provider that helps deliver a comprehensive set of Treasury Management solutions with fraud detection and prevention capabilities for commercial and electronic payments.
Other potential solutions that banks might consider include:
- Traditional Positive Pay: Enables check fraud protection by positively matching and validating dollar amounts and serial numbers against information from issues-check files.
- Payee Positive Pay: Fraudsters often alter the payee name on a known, good check to defraud organizations. While a fraudulent check is pending verification, a solution can automatically scan, read, and match the payee name printed on the face of the check against the payee information in the issued-check file.
- Reverse Positive Pay: Financial institutions can leverage this solution to present all paid items to their corporate customer for self-service review.
By providing an integrated suite of positive pay, account reconciliation, teller validation, and remote official check printing applications, financial institutions can combat most check fraud schemes.
For more information, download our white paper: “Protecting Business Customers from Fraud”
