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Advanced Fraud Solutions: Enhanced Fraud Defense for Safe Financial Assets

Bring up the topic of banking, and it won’t be long before the word “security” is dropped into the conversation. Susceptible as they are, banks fall prey to check fraud, card fraud, or online banking fraud every now and then, despite the institution’s best efforts to put up robust defense strategies. This, in part, can be attributed to the gaps in knowledge sharing among the players—big and small—in the industry. What if there was a way for banks to keep peers in the industry apprised about fraud data and events, automatically? This was the very thought that set the premise for the founding of a company called Advanced Fraud Solutions, whose mission is to secure every bank’s defense network, through a consolidated knowledge center on fraudulent activities. “Today, we are the leader of check fraud prevention working with thousands of financial institutions to stop fraud everyday across the country,” says Lawrence Reaves, CEO of Advanced Fraud Solutions.

By facilitating the sharing of useful information with one another and integrating it into the existing workflow, Advanced Fraud Solutions makes fraud prevention an automated day-to-day task. The company’s flagship product, TrueChecks® which is a national repository of bad, fraudulent or altered check data that is contributed to by thousands of different financial institutions. The information is integrated into major platforms used by banks at the front and back-office. By automating the process, clients can identify high-risk checks that could be a cause for potential loss. The software is designed in such a way that it not only spots the risk but also recommends appropriate actions to be performed against it. Thanks to TrueChecks®, banks save vast sums of money every year. Apart from customizable APIs, the company offers a standalone browser-based TrueChecks® service for retrieving information from the database. Additionally, financial institutions can review checks across all channels including ATM, ITM, mobile, teller, or branch.

According to a survey by the Federal Reserve, check fraud has increased over the last 12 months. In a recent case, a client ranking in the Top 50 banks in the U.S. was facing check fraud loss of around $3 million across 400 branches. With the help of TrueCheck®’s software, the loss was reduced by 66 percent, and two-thirds of the total number of checks were saved.

Today, we are the leader of check fraud prevention working with thousands of financial institutions to stop fraud everyday across the country

In addition to stopping check fraud the company also helps detect fraud within a financial institutions card portfolio. TrueCards® was originally built as an in-house solution for a community of institutions in Carolina and was soon introduced into the market allowing financial institutions to identify points of compromise or compromised merchants. One of TrueCard®’s essential elements is the CPC locator which stores the transaction data for both credit and debit card portfolios.

In the event of an unauthorized purchase or online warning sign, the CPC locator assists in tracking the transaction history to detect the compromised merchant. The next step is the merchant search which helps in locating the other cards within the client’s portfolio that have been previously used for the same merchant. To check the validity of a card, hackers make small transactions which often go unnoticed by the user. TrueCard®’s frequency search tool looks for such anomalous transaction frequencies to avoid its reoccurrence.

Advanced Fraud Solutions recently announced their integration with NCR Corporation to integrate TrueChecks® into their teller enterprise platform. The company has also partnered with check imaging services like Jack Henry’s ImageCenter and AlertCenter to enhance customer experience. Talking about the organization’s inclusion in the Inc. 5000 for the last five years, Ted Kirk, the Director of Industry Partnerships believes that leveraging their technology to assist banks in staying a step ahead of fraud losses is what sets the company apart.