Check fraud affects more than 80% of financial institutions nationwide and totaled $1 billion last year alone. Once a bad check enters your institution the chances of recovering the loss are low. On average, 38% of bad checks are never collected, and only 2% of check fraud perpetrators are arrested. New technologies give criminals tools that make it increasingly difficult for credit unions to combat fraud, which can represent the single, largest loss for credit unions institution-wide.
Your Tellers are Your Best Defense
The most effective line of defense against check fraud is at the teller line. For a teller capture system to be effective, it must do the following:
Capture the front and back of the check
Recognize the courtesy and legal amounts (CAR/LAR technology)
Perform MICR correction and duplicate detection
Verify that the check is signed and dated
If any of the data is missing or unreadable, the teller is alerted and can either correct the item or reject it—all while the member is present at the teller window.
The ideal Check21-enabled teller capture solution captures items early in the point of presentment and consults multiple comprehensive “red flag” or “check fraud” databases — in real time — then identifies questionable items for the teller to review. At that point, the teller can hand the check back to the depositor and, if necessary, notify the authorities before your institution falls victim to fraud.
With a more traditional branch capture system, fraud detection like this is impossible. Because items are processed after-hours, and not in real time, hours or days can pass before the questionable item is flagged. When the item finally is flagged, it is already in the branch and requires a series of steps for the credit union employees to notify the member and return the item. This consumes valuable time and employee resources that add hidden costs to the losses incurred.
Teller Capture can add a robust tool to your risk mitigation strategy that can reduce check fraud at your credit union and, ultimately, cut losses from fraud. Teller Capture also affords significant operational benefits. Transactions are balanced as they occur, in real time, eliminating end-of-day balancing. Teller capture also improves transaction integrity as deposited items are electronically stapled to deposit receipts and automatically indexed by member number.
Bluepoint Solutions Announces Teller Capture Webinar
Register today to learn how Check21-enabled teller capture can virtually eliminate check fraud at the teller line, enhance member experience, and improve teller efficiency. In its upcoming teller capture webinar, Bluepoint Solutions will present real-life examples of the benefits of installing a Check21-enabled teller capture solution. These case studies will illustrate results such as faster deposits, the elimination of Day 2 work on returned items and end-of-day balancing, and an overall reduction in the volume of returned items, courier costs and document storage costs.
Find out more about teller capture and fraud mitigation today! Register for Bluepoint's webinar and take advantage of peer and industry insight.