How to Automate the Review of Mobile Check Deposit Fraud

December 22, 2022

During our second session of Fraud Office Hours, an attendee asked, "How can you automate the review of mobile check deposits?" Watch this video clip and read below to see how Unit21's Head of Fraud Risk, Alex Faivusovich, responded.

How to Automate the Review of Mobile Check Deposit Fraud

"Mobile check deposit fraud is on the rise. The key here is that even with AWS, it’s not easy to detect check fraud.

We see it on the news pretty much every day; more and more mail carriers are being attacked. More mailboxes (and their contents) are being stolen; and frankly, it’s a country-wide problem. Check fraud is here to stay, and organizations should be prepared to address it.

The true way to go about it is to first understand what the absolute minimum threshold is for you to auto-approve checks. Once you know what the proper limit is for your organization, you can streamline manual reviews and focus the team on high-value and high-risk checks.

Customer profiling is another tool that can be leveraged here. Let’s say you have a brand new customer that’s never deposited checks before, and suddenly they come up with a check for $10,000 or more. This is a good point to question the business justification for this check, especially if the check is coming from a business entity. Why is the customer suddenly depositing big checks like that? Do they have a valid reason, or is this suspicious?

It’s vital to really understand how users behave on your platform, enabling you to draw insights (and make decisions) around what is and isn’t fraudulent behavior. Customer personas make it easier to flag changes in user behavior and detect anomalies in behavior."

Looking for more insights? Check out our second session of Fraud Office Hours on-demand for a deeper dive into current fraud trends and which preventative measures to consider.

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