Guardian Analytics: Remote deposit capture fraud a growing trend

guardianOf all fraud cases involving mobile banking applications, 72 percent included remote deposit capture (RDC) and the use of fraudulent checks, a study of 400 financial institutions shows.

Guardian Analytics, developer of behavioral analytics solutions for preventing banking fraud, analyzed mobile banking fraud across the company’s 400 customers. The company released its findings Monday.

Laurent Pacalin, Guardian Analytics President and CEO, described what the company found in its analysis.

“RDC fraud is the latest example of fraudsters merging the old and the new – in this case committing classic social engineering and check fraud over modern banking channels and technology,” Pacalin said Monday.

“Use of mobile banking and RDC is skyrocketing, which puts banks and their customers at greater risk. This is another example that points to the need for financial institutions to be nimble and advance their fraud prevention capabilities to the point of automatic protection against existing and emerging tactics across traditional and new banking channels.”

Guardian Analytics’ Mobile Fraud Trends research identifies the two schemes dominating mobile RDC fraud, both of which feature social engineering of a victim, and against which traditional forms of authentication and even newer forms of biometrics are defenseless.

  • The Sweetheart Scam: Fraudsters foster relationships online and then manipulate their victims into cashing fraudulent checks
  • Fake Online Payday Lenders: Criminals that trick prospective borrowers into unwittingly depositing fraudulent checks through RDC and then cashing them out as a part of a fake loan-approval process.

“Financial institutions can easily defeat criminal attacks that use such varying combinations, even those that rely on the victim to authenticate,” Pacalin says. “Using behavioral analytics and machine learning solutions, customers are successfully preventing losses and proactively helping their customers avoid future fraud problems.”

Download the Guardian Analytics Mobile Fraud Trends Report and infographic:


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