ST. JOHN's, Newfoundland--Verafin, a provider of cloud-based fraud detection and anti-money laundering software (FRAMLx), said it has made a significant step forward in the development of next generation analytics that are helping financial institutions (FIs) detect and prevent account fraud. The company said it examined data trends across more than 1400 institutions within the Verafin Cloud to develop new solutions to combat account fraud. These new solutions apply advanced analytics to alert on unusual activity in real-time, it said.
"Logix FCU, headquartered in Burbank, Calif. with more than $4.8 billion in assets, is already experiencing significant benefits by using Verafin’s account fraud detection analytics. Within weeks, the credit union prevented thousands of dollars in fraud losses," the company said in a statement.
“We’ve definitely seen a reduction in false positives – the latest alerts are very targeted,” said Matthew Overin, Manager – Fraud Risk Management at Logix FCU, in a statement. “They’re helping us catch things that would be very difficult to find without Verafin.”
Verafin said its latest account fraud analytics helped alert Overin and his investigative team to fraudulent activity during a mass reissuance of debit cards while the credit union was transitioning to chip-and-pin technology. “There were mail thieves here in the area who got their hands on some of the reissued cards. They also managed to steal boxes of checks from people’s mail. They were activating our debit cards and using them to deposit the stolen checks through ATMs and then cash out. Verafin’s early alerts meant we prevented thousands of dollars in fraud.”
In addition, the investigative team uncovered fraudulent dormant card transactions, the company said. “As part of our card reissue there were a number of cards that hadn’t seen much use by our members, then all of a sudden there was activity. We were able to shut them down quickly. Alerting on just one of those cards helped us prevent a $10,000 loss.”
Verafin said its account fraud analytics leverage data cross multiple channels to give institutions a holistic view of their client’s activity. The new scenarios provide innovative solutions for various fraud trends impacting FIs across the country including:
- Deposit Fraud across multiple channels (ATM, Mobile and Branch)
- Wire Fraud
- ACH Fraud
- Online Account Takeover