OrboGraph

Fraud prevention is more critical than ever, and Southern Financial Exchange's upcoming training is a perfect opportunity to sharpen your defenses! Join industry professionals, including OrboGraph's James Bi, for hands-on learning about check fraud trends, methods, and defenses. Don't miss out on these essential sessions. Register today!

The Battle of AI: Fraud Fighters vs. Fraudsters As AI technology advances, a high-stakes battle is unfolding. On one side, FIs are deploying cutting-edge AI to detect and stop scams. On the other, fraudsters are leveraging the same tech to make their schemes more convincing and harder to catch. OrboGraph's Marketing Manager James Bi shared a frightening insight from a fraud professional: “Fraudsters are one to two generations ahead of financial institutions when it comes to leveraging new technologies like AI.” Payments Dive confirms this, revealing AI is now sophisticated enough to mimic real user behavior and generate counterfeit checks that evade traditional defenses. What does this mean for financial institutions? It’s clear that staying reactive won’t cut it. A proactive, multi-layered approach is the only way to stay in the fight. Is it possible for banks to outpace fraudsters in this AI-driven battle, or is catching up the best we can hope for? Read the full blog post to learn how tools like image forensic AI, behavioral analytics, and dark web monitoring can keep your defenses strong — or better yet, help reclaim the upper hand.

Is it time to embrace Open Banking? With the CFPB’s finalization of a transformative rule under the Dodd-Frank Act, consumers in the U.S. can now securely control and share their financial data with third-party providers. Compliance will be rolled out in phases, impacting large banks by 2026 and smaller ones by 2030. This rule could redefine financial services by promoting competition and innovation, but it also raises concerns. The Bank Policy Institute has already challenged aspects of the rule, highlighting potential risks to data security and the compliance burden on financial institutions. Do you believe the benefits of open banking outweigh the potential risks to data privacy and security? Read more about the impacts, benefits, and industry reactions in our latest blog post.

Why do so many Americans still believe checks are safer than digital payments? Checks are often viewed as reliable and “safe” because of features like a paper trail and delayed fund extraction. But, as check fraud surges and techniques like check washing and cooking become more sophisticated alongside rising mail theft — this perception may be costing consumers and financial institutions more than they realize. In fact, only 22% of banks and credit unions use dedicated check fraud detection tools, leaving significant gaps in fraud prevention. As check fraud risks continue to grow, FIs need to go beyond traditional security measures. In our latest blog, we break down why checks remain vulnerable and how banks can protect their customers through proactive education and advanced detection technology.

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.