Banks Detect Financial Crimes with Software

Strategies for detecting financial crimes now include software that is able to detect fraudulent activities and anti-laundering activities to be integrated with all banking systems for most financial institutions.

The rate of financial crimes is on the rise. Today, federal banks and community lending institutions alike are dealing with money laundering from white collar criminals that are very sophisticated. In the end, these financial institutions are finding themselves at a crossroad in detecting fraud and protecting victims from these criminals. Embracing this reasonability, quite a number of strategies are being considered in order to combat these rampant activities. In fact, many of these strategies have become mandatory in the modern banking business.

Just as the financial institutions like big banks, credit unions, community banks and other money handling organizations have gone through great changes in terms of technology, today’s criminals have also kept up with the trends as they have also come up with their sophisticated methods to beat the banks. Some of the most lucrative ways fraud is still being done is at the teller window by passing bad checks and modern criminals are cheating ATM machines using false identities. Numerous fraud detection solutions use a single-focus approach to detecting fraud.

In order to battle this, organizations will have to come up with more aggressive defenses that offer a combination of intelligence and multi-tasking. An improved data mining, anomaly detection and real time alert system will provide a more competitive advantage against these criminals.

It is good news that there are companies that are already providing solutions that consider these advanced solutions and today the workflows can integrate across multiple touch points while interacting with a common set of rules and database. This is risk protection across different multiple anti-money laundering silos and fraud types. Today’s technology is already able to mitigate these two general risks by blending intelligence in a common operational platform.

With these two problems, solutions for risk protection have been formulated.

1. Fraud Risk. Software fighting financial crimes analyzes the payment types and channels that are utilized in a particular financial institution. After going through such an extensive process, it will then come up with a configurable solution which can be easily utilized to check for check fraud, wire fraud, ACH fraud, mobile payment fraud, credit card fraud, debit card fraud, and many others.
2. Money Laundering Risk. Various solutions have already been formulated in order lower the risks of money laundering. These includes intelligent detection tools, transaction monitoring, alert investigation, watch list filtering, workflow, case management, management reporting, and regulatory reporting.

Software that helps reduce check fraud at tellers windows most likely uses electronic signature verification intelligence that is lightning fast.

The best banking software to detect financial crimes will employ fraud alert systems that respond to banking management in real time.  One challenge facing community banks is converting customer signatures to digital records. Most bankers are outsourcing this task to companies with conversion software for banking but therein lies other risks of finding credible resources