Banks on Alert for Check Fraud, Insider Fraud and Scams

Fraudsters are using tried-and-true tactics such as check washing as well as Zelle scams and a host of insider threats to scam banks and their customers. Frank McKenna, chief fraud strategist at Point Predictive and author, explains why fraud is on the rise and the steps banks can take to stop it.

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“Check fraud has seen a tremendous rise. I think this is going to be the highest this year for check fraud in history,” says McKenna, author of the FrankonFraud blog.

McKenna also warned that Zelle fraud is getting a lot of attention as the U.S. government looks for ways for banks to do more to protect consumers from money-transfer scams. Another type of crime on the rise is insider fraud involving SIM card swapping by employees at phone stores. Fraudsters are working with these employees to use stolen SIM cards to take over bank accounts, he warns.

“Banks really need to shore up those technologies that are preventing things like credential stuffing or social engineering because a lot of these account takeovers are coming through the phone channels,” McKenna says.

In this video interview with Information Security Media Group, McKenna discusses:

• The tactics for check fraud and why it is on the rise;
• Why account takeover scams will be the next big thing;
• Why investing in more identity solutions alone will not defend against scams.

McKenna has advised more than 200 banks, lenders and finance companies worldwide to help them achieve reductions in fraud. He also provides fraud management tips through his daily blog, FrankonFraud.com.