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JPMorgan Chase Files Lawsuits Amid Viral Check Fraud Glitch In late August, a technical error in Chase's ATM system allowed customers to withdraw large sums before their checks cleared. In response, Chase has filed lawsuits in federal courts across the U.S., seeking to recover the funds and hold individuals accountable for violating deposit agreements. Incidents like this show how quickly fraud schemes can escalate, especially with viral exposure. How can the industry adapt to prevent these types of viral fraud cases? What strategies do you see as the next step in protecting against large-scale check fraud? Join the conversation in the comments!

In just five months, nearly 20,000 stolen checks—worth over $485 million—were seen for sale across 53 Telegram channels, according to Dr. David Maimon, Head of Fraud Insights at SentiLink. The findings reveal that 63% of these checks involve business transactions, and 22.6% are government checks—including IRS payments. In total, 31 financial institutions had $1M+ in checks shared, with four of the top five U.S. banks accounting for over $10M. But this isn’t just about stolen checks. The information fraudsters gather —routing numbers, contact details, account info—paves the way for identity theft, ACH fraud, and more. Too often, departments use separate technologies instead of unified access to case management systems for tracking and analysis. Combating fraud at this scale requires cross-departmental collaboration and integration of key tech like behavioral analytics, image forensic AI, consortium data, and dark web monitoring into a single system to provide a full fraud detection picture. Can the industry strengthen its response? Explore how institutions can close the gaps and effectively disrupt these fraud networks in our latest blog post. (Image source: David Maimon)

Over the past month, we've published incredible content via our OrboNation Check and Modernizing Omnichannel Check Fraud Detection blogs, including: -Millions in IRS Refund Checks Stolen and Altered -Is Check Fraud Putting mRDC at Risk? -OrboGraph Virtual Check Fraud Roundtable -Businesses Switching to Alternative Payment Methods are NOT the Answer to Check Fraud In case you missed anything, review the latest OrboNation Newsletter online or download the PDF by clicking the link in comments below.

What keeps checks relevant in a digital world? In the latest episode of the Reinventing Banking podcast, Banking & Fintech Editor for Bank Director Kiah Lau Haslett and Shai Stern, CEO of CheckAlt, explore this question. And, no surprise that legacy systems and outdated processes play a significant role. When systems fail to communicate, checks often become the default. Stern explains, “With all the demand, banks are often stuck with legacy systems, making it easier to just print and mail a check." OrboGraph's James Bi adds that removing checks entirely isn’t a viable solution. In a highly competitive industry, taking away a key payment channel could drive customers to competitors. How do you think banks can better adapt to these challenges? Listen to the full podcast and learn more about the staying power of checks in today's blog post.

With 65% of organizations falling victim to check fraud last year, businesses need more than just basic security measures—they need a plan. While banks deploy advanced technologies like payee positive pay and image forensic AI, businesses have a crucial role to play in protecting themselves from check fraud. That’s why Valley Commercial Bank released Safeguarding Your Business with Check Fraud Prevention, a practical guide for businesses to better understand how to prevent and respond to fraud incidents. From reconciling accounts regularly to training employees on spotting fraudulent checks, the guide emphasizes a proactive approach The guide also emphasizes the importance of quickly reporting fraudulent activity, with steps like notifying your bank, filing a police report, and keeping detailed records. Acting swiftly helps limit financial losses and assists in tracking down fraudsters. Explore how these anti-fraud measures enhance protection and help businesses avoid financial losses.

Is merging fraud and AML departments the best way to combat check fraud? A recent BAI Banking Strategies podcast sparked this debate, with Greg Kanevski of ServiceNow advocating for a unified approach. But OrboGraph experts James Bi and Peter Shortino offer a perspective consistent with that of instructors at the ABA AML and Fraud School. Collaboration between fraud and AML teams is essential, but merging them may not be the solution. Fraud analysts and BSA/AML analysts bring unique skills and training. While fraud detection is often reactive and time-sensitive, AML investigations are more thorough and time-intensive. Aligning these teams under a common framework, where they can share data and insights, enhances efficiency without losing focus on their specialized roles. Integrated tools like image forensic AI and transactional analytics bridge the gap, helping both teams to collaborate while maintaining their distinct strengths. What do you think? Should fraud and AML departments be merged, or is close collaboration the way forward? Share your thoughts in the comments and check out our latest blog post for more on this debate.

Heading to Nashville for the FIS Image User Group from October 22-25? So are we! OrboGraph will be exhibiting at this year's event, and we’re excited to connect with industry leaders and discuss the latest in check fraud prevention. Stop by our booth to learn how our solutions can enhance your institution’s fraud detection capabilities. See you there!

Mobile remote deposit capture (mRDC) has made banking more convenient, but it’s also a prime target for check fraud. With only a check image to rely on, banks face the tough challenge of preventing fraud while keeping customers happy. Some institutions are tightening deposit limits and extending hold times—leaving customers frustrated. There is, however, a better way to fight fraud without compromising the customer experience. Advanced technologies like machine learning and image forensic AI give banks the ability to reduce risks while maintaining services that customers have come to expect. Have you seen firsthand how mRDC fraud is affecting customer trust? Read today's blog to explore how your institution can enhance fraud defenses without sacrificing customer satisfaction!

Small businesses like contractors, landlords, and service providers still depend on checks for up to 25% of their revenue, making them attractive targets for check fraud. Even more alarming, business checks sell for more than personal checks on the dark web because they typically hold more funds. With digital payment methods on the rise, switching to alternative payments may seem like a solution, but it’s not that simple. According to the 2024 AFP® Payments Fraud and Control Survey, 70% of businesses have no plans to stop using checks in the near future. Why? Because alternative methods bring their own issues—high fees, unrecoverable funds, and increased vulnerabilities. For small businesses, staying ahead of fraud means being proactive, and that’s where banks and financial institutions can make a difference. By providing tools like payee positive pay and image forensic AI, FIs can help businesses protect themselves from check fraud. Find out how your institution can support small businesses in today's full blog post. (Link in comments)

Big news for financial institutions: FINOS has introduced a new AI adoption framework. The Fintech Open-Source Foundation (FINOS) just released a first draft of a comprehensive AI framework designed to help banks and FIs safely adopt large language models (LLMs). This framework outlines 16 control procedures aimed at addressing 14 major threats, including data leakage and encryption challenges, providing much-needed structure in an area where compliance has been lacking. With 72% of finance leaders already using AI in their operations, it's clear that AI technology is seen as essential to the future of financial services. However, many institutions are still working with legacy systems that hold them back from fully leveraging these advancements. This new framework offers a much-needed pathway to modernization, helping financial institutions adopt AI responsibly while enhancing fraud prevention and improving operational efficiency. Learn how this new framework is key for the future direction of AI in banking by reading today's OrboNation blog post. (Link in the comments)