Advanced Fraud Solutions (AFS), a leading provider of deposit fraud detection software, today announced the release of a new report, Beware of Mobile Deposit Scams, on how the increasing adoption of mobile banking has created new opportunities for fraud. The paper explores in detail how fraud operators use mobile deposits as a means to steal funds. The paper also highlights best practices for banks and credit unions to securely accept mobile deposits.
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“The new normal has forced financial institutions and their customers to adopt mobile banking as the go-to means of check deposit,” said Ted Kirk, VP of Strategic Partnership at AFS. “Consequently, the popularity of mobile banking has also led to new and revamped fraud tactics centered around mobile check deposit. Most recently, for example, we’ve seen an uptick in unemployment fraud, romance scams, and stimulus-related fraud schemes. Financial institutions that don’t step up the security of their mobile banking channel might be at risk to these schemes.”
According to the paper, the use of mobile banking apps has soared since the beginning of the year. The FBI reports that there has been a 50% surge in mobile banking since the beginning of year. And that fraud operators are actively looking to “exploit new mobile banking customers using a variety of techniques.”
Among the paper’s recommendations to secure mobile deposits, AFS details the addition of real-time assessment, access to better, more robust data, as well as the use of AFS’ leading check fraud prevention solutions, TrueChecks®, to help mitigate potential losses.
TrueChecks is the industry’s largest check fraud database and allows financial institutions to validate checks deposits in real time, across deposits channels. TrueChecks also provides financial institutions with a direct link to the U.S. Department of the Treasury to aid in the validation of Treasury items.
