Charlie’s Post

As digital payments become the norm, a brewing storm threatens to shake the foundations of trust in the financial system. The Consumer Financial Protection Bureau (CFPB) has launched a high-stakes investigation into allegations of widespread fraud on the popular peer-to-peer payment platform, Zelle. With major banks like JPMorgan Chase and Bank of America under scrutiny, the outcome could have devastating implications for millions of consumers who rely on these services daily. Are these institutions doing enough to protect your money, or is a major crisis on the horizon? Dive into our in-depth analysis to uncover the shocking details and what they mean for the future of your financial security.

In today's financial landscape, application fraud is becoming more sophisticated, especially with the rise of generative AI. A recent study shows that 98% of financial institutions experienced fraud attempts in 2023. As fraudsters leverage AI to create fake identities and documents, traditional detection methods are struggling to keep up. The key to combating AI-driven fraud lies in utilizing AI-driven solutions. Machine learning models can analyze vast amounts of data to accurately detect fraudulent behavior, helping institutions stay ahead of fraudsters while maintaining a seamless customer experience. Solutions like Zest Protect offer a holistic approach to fraud detection, enabling lenders to fine-tune risk assessments and automate decision-making. As fraud tactics evolve, financial institutions must embrace AI to protect themselves and their customers. #AI #FraudPrevention #Fintech

Zest Protect is the newest #AI solution, helping credit unions and other lenders stay one step ahead of fraudsters. This advanced, flexible detection tool can seamlessly identify all types of application fraud without creating friction for your applicants. In our latest blog read more on how Zest Protect, AI-powered #FraudDetection for #Lenders, can level up your fraud defense: https://lnkd.in/gH5AUgvN #CreditUnions #Lending #Banks #FinancialServices #MachineLearning #ArtificialIntelligence #FinTech #LoanDecisioning #Underwriting #LendingTech #Innovation #FairLending

Last week, the Consumer Bankers Association hosted a modified Chatham House Rule roundtable to identify and prioritize tangible issues that a public-private, cross-industry initiative could pursue to address the growing fraud and scam issues that consumers face. We were excited to be able to, again, partner with Nick Bourke. The afternoon's discussion was the culmination of several weeks' work with Nick to review relevant literature and interviews with nearly three-dozen scam and fraud experts around the world. The roundtable discussion was framed as a review of a white paper that Nick has published to SSRN, with sponsorship from CBA (linked-to in our summary paper of the discussion). CBA has published a broad summary of our roundtable discussion. Our document includes CBA's recommendations for projects that a public/private, cross-industry national strategy should address first. It also sets out CBA's own policy priorities policy agenda in this space. Huge thanks to the participants in our roundtable, which include: * Capital One (the Chair of the CBA Fraud Committee) * CTIA * Early Warning Systems * The Federal Bureau of Investigation * Fintech Takes * The Identity Theft Resource Center * Stripe * The White House, National Security Council and * One or more additional independent federal agencies with relevant supervisory/enforcement authorities, but declined to be identified. There is so much work to be done in this space. But we are excited to link arms with policymakers and our counterparts in other industries in a collective effort to make sure that consumers get the protections they deserve. - - - - - Please note that participation in the Roundtable should not be construed to be an endorsement of Nick's paper, CBA's policy priorities coming out of the roundtable, or our summary of the day. (Shout out to Brian Fritzsche, CBA's tireless and ever-diligent lead on this project.) https://lnkd.in/evUbVhUX #scams #fraud #aml #policy

Faster Payments = Faster Fraud 💵 🥷 Across the financial landscape, there’s a growing recognition that a multi-pronged approach to fighting this fraud is the most effective course of action. Let’s be honest, what banks and financial institutions are doing now isn’t going to cut it. Data shows that “40% of FIs that use three or more anti-fraud technologies said the benefits of open banking outweigh the risks, compared to 28% among those that use two or fewer anti-fraud lines of defense.” Want to fight financial fraud with more effective strategies? A multi-pronged approach is the way to go. #FinancialFraud #Technology #FinancialCrime #BusinessTransformation

“What exactly is a payment?” A question stemmed from a conversation with Jeremy Balkin “Well, it’s where we pay one another.” Pretty simple answer right? It’s what the average buyer would think. Then he said, "But what are we actually exchanging?" That's when I realized what he was getting at. Payments are so much more than just money from one account to another. Forget the money, above all, we’re exchanging information. — Emails — Private information — Addresses — Phone numbers The list goes on. On top of this, we're using old and outdated banking systems and softwares to do this. And with these old systems, you're opening yourself up to a lot of fraud, especially check fraud. → Businesses and consumers lose $815M+ every year to check fraud. →Why? Because of lack of modern security features. Checkalt has the modern technology that protects you and helps your payments land quicker, more securely, and hassle-free.

Good report with generational data on scam victims--can we do a better job educating our customers and members? BioCatch and Javelin Research published some great research on the emotional impact of being scammed here: https://lnkd.in/geJXAnPb At the end of the report, the researchers noted that only 57% of scam victims noted that their institution's website or mobile banking app contained any education on scams. 28% were unaware and 15% said there is no education. I know we are educating our customers and members, how do we increase the awareness to scams and help our communities stay safe? Please leave me your thoughts in the comments.

Deposit fraud 💸 is hitting banks and credit unions on all fronts these days. While old-school, low-tech deposit fraud at the teller window hasn't disappeared, fraudsters have switched up their tactics. Now, they’re incorporating new schemes to exploit deposit channels that don’t require face-to-face human interactions—like ATMs and remote deposit capture. 🏧 💡 Explore why deposit fraud is such a persistent problem for banks and credit unions, and more importantly how FIs can fight back using a powerful one-two punch of big data and predictive analytics in our latest blog.

🔍 Discover how automating the fraud claims process can help banks swiftly resolve cases with unparalleled accuracy, enhancing customer trust while combating financial fraud: https://okt.to/4aRk5X #fraudclaimsautomation #processautomation #lowcodeplatform