With new technology comes new risks. We see this in many aspects of daily life. Keyless entry and remote start for cars, for instance, offer convenience but also open doors to new methods of theft. Similarly, Wi-Fi boosts efficiency at home and work but can lead to security challenges.
In the same vein, mobile banking has become a must-have to stay competitive. However, Remote Deposit Capture (RDC) presents a new form of credit union fraud. A recent analysis found that over 70% of organizations are still impacted
One prevalent RDC scam involves thieves making a remote deposit via a mobile device, then physically bringing the same check into the branch to cash it. Because funds from mobile deposits often appear immediately, the check hasn’t cleared by the time it’s cashed at the teller.
Fortunately, credit unions are stepping up with improved methods to combat RDC fraud. Here are three legit ways to prevent Remote Deposit Capture fraud.
One effective measure is unifying the in-branch Check-21 system and RDC cash letters. Having separate cash letters allows fraudsters to deposit the same check through multiple channels without being detected.
By unifying these cash letters, credit unions can ensure that all deposits, whether made remotely or in person, are handled through the same system, making it much harder for fraudsters to exploit the process.
Most Check-21 teller capture systems already use duplicate deposit scanning, a safeguard that checks if a check has already been processed. While this feature works well for in-branch deposits, the introduction of RDC created a loophole.
Many credit unions maintain separate systems for RDC and in-branch Check-21 deposits, allowing duplicate deposits to slip through unnoticed. By merging the systems as mentioned in the first point, the duplicate deposit scan can cross-check all deposits, whether they’re made remotely or in the branch.
Another essential fraud prevention step is integrating with a compliance and fraud database. For instance, TrueChecks® offers integration with Check-21 systems, allowing credit unions to crosscheck RDC and in-branch deposits against a national database. TrueChecks® can flag potential issues, such as:
TrueChecks® provides real-time recommendations based on Reg CC guidelines, minimizing fraud risk while streamlining the process for credit union staff.