A new consortium called FraudXchange has been launched to address the increasing problem of check fraud in the United States, particularly exacerbated by the pandemic and mail theft. Financial institutions can join this cooperative network to share insights, strategies, and intelligence related to fraud prevention. FraudXchange offers reporting of fraudulent transactions, streamlined communication, and expedited funds return between member banks and credit unions. Additionally, it provides dark web monitoring, employee email fraud detection, and a fraud training platform. With the aim of empowering financial institutions to combat check fraud effectively, FraudXchange aims to improve security and reduce losses in the financial sector.
BIRMINGHAM, Ala., Jan. 4, 2024 /PRNewswire-PRWeb/ -- Though today's financial landscape is rapidly evolving, checks remain a consistent form of payment. Unfortunately, since the pandemic, the financial institutions across the United States have experienced a significant increase in check fraud, partially due to mail theft.
In response to the check fraud crisis and the frustrations expressed by financial institutions, regarding the communication and exchange of fraudulent items, FraudXchange has launched as a cooperative network uniting financial institutions to share critical insights, strategies, and intelligence, bolstering collective efforts in fraud and loss prevention.
"We at the Fed know that checks are not going anywhere, even if there are a couple billion fewer of them around these days. But as with any payment method, checks have very real vulnerabilities that plenty of people are trying right now to exploit. Understanding what they are can go a long way toward stopping fraudsters from stealing from you," said Mike Timoney, vice president of secure payments based at the Federal Reserve Bank of Boston, in a 2023 press release.
FraudXchange provides financial institutions with near-instantaneous reporting of fraudulent transactions between member banks and credit unions, empowering them to act swiftly and decisively. With secure and tracked communication between member banks and credit unions complemented by agreed-upon timeframes, the need for time-consuming phone calls and emails is minimized as FraudXchange expedites the return of funds when possible, working seamlessly alongside existing regulations outlined in Regulation E, Regulation CC, the UCC, judicial review and all FFIEC and NCUA regulatory guidelines.
In addition to enhanced communication and streamlined funds return, FraudXchange offers members significant tools such as dark web monitoring, whereby the dark web and other entities such as Telegram will be monitored for customer account information, ensuring early detection of potential threats to financial security. FraudXchange will also provide fraud monitoring of employee email addresses, uncovering your financial institution's riskiest email addresses, and promptly alerting you to breaches, enabling swift protection of your at-risk employees.
Furthermore, FraudXchange includes a fraud training platform to Empower your team with the knowledge and skills to recognize and combat fraud effectively. Members have access to FraudXchange's monthly fraud newsletter and real-time fraud blog to stay updated on the latest trends, tactics, and best practices in fraud prevention.
"I have worked with financial institutions for over 30 years," said FraudXchange founder David Brasfield. "I always try to listen to what frustrates them and understand their pain points and the most resounding sentiment recently has been a frustration in preventing and recouping costs associated with check fraud."
Data recently released from the Financial Crimes Enforcement Network showing that through the end of October 2023, depository institutions had filed more than 440,000 suspicious activity reports pertaining to check fraud, does indeed indicate another record setting year for check fraud.
To find out more about FraudXchange, interested financial institutions should visit fraudxchange.com or email [email protected].
About FraudXchange
FraudXchange, a cooperative network, unites financial institutions to share insights and strategies for fraud prevention. With rapid reporting of fraudulent transactions, secure communication, dark web monitoring, and employee email fraud detection, FraudXchange equips financial institutions to protect their operations. To combat the rising threat of check fraud, visit fraudxchange.com or contact [email protected] or 205-981-4474. Together, we secure the financial future.
Media Contact
Karly Field, FraudXchange, 205-981-4474, kfield@threatadvice.com, www.fraudxchange.com
SOURCE FraudXchange
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