New report identifies check fraud via Remote Deposit Capture as primary mobile banking fraud scheme
Mountain View, CA —April 04, 2016 —– Guardian Analytics, the market leader in behavioral analytics solutions for preventing banking fraud, today announced findings from in-house research into mobile banking fraud across the company’s 400 customers. Analysis conducted by Guardian Analytics found that of all fraud cases involving mobile banking apps, 72 percent included remote deposit capture (RDC) and the use of fraudulent checks.
“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,” noted Eric Tran-Le and Hue Harguindeguy, Co-CEOs at Guardian Analytics. “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.”
A recent report on banking fraud released by the American Bankers Association highlights the impact mobile banking fraud is having on institutions of all sizes, with 100 percent of the largest financial institutions reporting RDC fraud and a 400 percent growth in losses reported over two years across financial institutions of all sizes.
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, in which 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,” continued Pacalin. “Using our behavioral analytics and machine learning solutions, our customers are successfully preventing losses and proactively helping their customers avoid future fraud problems.”
Download the Guardian Analytics Mobile Fraud Trends Report and infographic: www.GuardianAnalytics.com/RDC-fraud.
About Guardian Analytics
Guardian Analytics is the pioneer and leading provider of behavioral analytics and machine learning solutions for preventing banking fraud. Over 400 financial institutions have standardized on Guardian Analytics’ innovative solutions to mitigate fraud risk and rely on the company to stop the sophisticated criminal attacks targeting retail and commercial banking clients. With Guardian Analytics, financial institutions build trust, increase competitiveness, improve their customer experience and scale operations. Guardian Analytics is privately held and based in Mountain View, CA. For more information, please visit www.GuardianAnalytics.com.