Suspected Deposit Fraud items worth $330 M identified in one year for a Top 20 U.S. Bank
Overview.
A super-regional U.S. Bank with operations in the Eastern and Southern parts of the United States. The Bank was growing rapidly and expanding its retail and commercial banking services across the country.
As with all retail and commercial banks, one key service that they offer is current accounts, which allow for frequent check deposits. The volume of checks deposited with the bank fluctuates daily, monthly as well as seasonally (peak time during the holiday season). And with the increase in volume, check fraud also increases.
Some of the challenges the Bank faced:
Many high value fraudulent checks hitting the accounts every day
Bank’s customers required all their items updated at the start of the business day
The Bank was unable to meet turn times and deadlines due to frequent volume fluctuations
Solution.
The Coforge team used a detailed assessment of the processes to come up with specific improvements:
The Coforge team used a detailed assessment of the processes to come up with specific improvements:
Account Reconciliation specialists researched suspected items and decided whether to pay or add to ‘suspect’ queue
A dedicated team was created to perform reconciliation in Payee Positive Pay, Positive Pay and they cross-trained others to manage volume spikes
A 3 hour turn time early morning shift was created to meet the day's first deadline
Suggested automated reporting of exceptions via a vis manual tracking
Suggested an additional queue for check value of greater than $10K for second review to prevent invalid approvals
The Impact.
$330M
Worth of deposit fraud items identified to avoid losses
83K
Checks identified as ‘suspects’ in one year
100%
Of prior days volume was processed before start of business day of the Bank
