Survey shows rise in sophisticated fraud tactics

Sixty-two percent of institutions reported a rise in sophisticated fraud tactics, according to a new survey by the Center for Payments, Nacha, and ICBA.

About the Survey: Data was collected this summer from 443 financial institutions with asset sizes ranging from under $10 million to over $25 billion. The data highlight the role of long-term mitigation strategies, including account holder education programs.

Findings:

  • Fraud attacks have surged in check processing and debit card transactions, with 58% and 51% of institutions, respectively, experiencing more frequent occurrences.

  • Around 50% of financial institutions closely monitor account activity and impose daily transaction limits to thwart fraud when opening new accounts; a third conduct background checks; and a quarter require additional documentation.

Resources: The ICBA website features community banker resources on fraud and scams, such as its Check Fraud Guide and online courses.