Thursday, November 5, 2009

Check Fraud: Protecting Your Bank and Its Customers


Many of the scams are obvious, but many are presented in such a way that the would-be victim (your customer) is more easily tricked into believing the claims of the fraud artist.

Each presentment of a fraudulent check presents potential problems for 1) the bank of first deposit, 2) the customer presenting the check, and 3) the paying bank. Knowing how to detect and reject bogus checks can protect both your bank and your customers. Knowing how to handle fraudulent checks that make it "under the radar" can save your bank from significant losses.

This program is designed to help your bank recognize the signs of fraudulent check activity. Trained bank personnel can help save gullible customers from themselves by preventing the checks from being deposited. Keeping the customer out of trouble means avoiding problems for your bank, too. Responding appropriately when a fraudulent check is presented for payment or has been charged back to your bank can minimize the losses your bank will suffer.

Upon completion of the program participants will understand:

how Regulation CC helps make counterfeit check fraud "profitable"

how common check fraud scams work

how customer behavior can "red flag" a check scam

physical clues of counterfeit checks

the case for check verification

the arguments against verification

fatal errors in check verification

when a hold can be placed, and for how long

the "reasonable cause" exception hold

why holds often aren't enough

counterfeits and the "midnight deadline"

how to handle late returns

how local clearinghouse rules may affect you

what NOT to tell a depositor about check clearing

what you MUST try to make customers understand

what to do when fraud is suspected

why customer education is your most effective tool

The program is designed for teller supervisors and trainers, customer contact personnel, and anyone involved in your fraudulent check stop-loss efforts.

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