Credit Card Issuers
Remittance Fraud and Loss Prevention
Challenge:
Remittance payments drawn on checking accounts present a challenge when coupled with the standard industry practice of extending the open-to-buy when a payment posts.
While this enhances customer service, it also leaves issuers vulnerable to a host of fraudulent schemes including bust-outs, never pay defaults, and account takeover.
To increase payment processing efficiency and enhance customer service, credit card issuers also accept and/or convert remittances to electronic form such as telephone and Internet originated automated clearing house (ACH) transactions.
The anonymity, reach and speed of these transactions increase the risk of fraudulent activity exponentially.
Issuers are unable to positively verify that an individual is authorized to transact on a checking account (at all, much less in real-time).
Solution:
Identifies potentially high-risk remittance payments made from checking accounts.
For both physical and online items, this service validates an account’s existence, reports its status and whether the payer’s name, address and other elements match the account.
Job Applicant and Employee Screening
Challenge:
Those individuals in financial services, who are terminated because of fraud, will often be rehired at other institutions.
This is due in large part to employers and law enforcement not pursuing criminal charges because of case floor limits, as well as resource and budgetary constraints.
With the lack of prosecution, previous transgressions are not revealed in traditional background checks.
This allows them to gain employment elsewhere within the industry and potentially repeat their wrongdoing.
Solution:
Provides notification of job applicants and employees who have been released by another institution because they knowingly caused or attempted to cause financial loss.
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