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Working Together to Fight Bank Fraud

by : Stan Jaslar

Banking can be a competitive industry where you’re always contending with the bank on the other side of town or even on the other side of the country. However, when it comes to fraud, banks need to work together. To reduce fraud in your institution and to help other banks in the progress, check out these strategies.

Open Lines of Communication

Communication is key when trying to stop fraud. On the simplest level, if someone comes into one of your branches and tries to cash a fraudulent check, you may want to call your local competitors and let them know about the threat. Similarly, if you learn about a new threat, you may want to have a shortlist of other bankers who you call or email. Then, in return, they can notify you when new threats surface in their branches.

Get Involved with National Information Sharing Organizations

On a national level, you may want to get involved with the Financial Services Information Sharing and Analysis Center (FS-ISAC). The FS-ISAC has 7,000 members ranging from big banks to small banks and credit unions. Through this organization, you can share information on fraud and related threats. You can even talk about issues such as holes in your fraud prevention software or which types of software you recommend.

In all cases, you get real times alerts about the issues facing your industry. The organization understands the delicacy of these issues, and to that end, it allows members to share information anonymously. However, because members are vetted, you know the information is real.

Share Resources with Local Banks

You may also want to consider sharing relevant resources with other banks. For example, you may want to work with other banks to develop a fraud prevention training course for your employees. Getting multiple voices involved in projects like that can help to ensure you don’t overlook any critical details. If you are sending employees to the American Bankers Association convention or to another out-of-town convention, you may want to travel with employees from other banks to discuss fraud trends and strategies.

Use Pre-Existing Tools

There are a number of pre-existing tools that are designed to help banks work together to fight fraud and theft. In particular, make sure you’re taking advantage of ChexSystems. These systems allow you to share information about customers whose accounts have been closed for fraudulent or suspicious activities.

Fraud can create serious financial losses for banks, and in many cases, the losses are compounded as the banks lose customers. Beyond working collectively with other banks, you need the right fraud prevention tools in place, and that’s where we come in. Contact SQN Banking Systems today to talk about your fraud needs.



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