In August 2024, a colossal data breach at National Public Data exposed up to 2.9 billion personal records, including Social Security numbers. This event marks one of the largest breaches in history, sending shockwaves through financial institutions, particularly banks and credit unions, who now face heightened risks of fraud and identity theft.

Immediate Fallout for Financial Institutions

For banks and credit unions, this breach is a clarion call to the lurking dangers of widespread data exposure. With criminals potentially using stolen data to access accounts, unauthorized transactions could skyrocket. Financial institutions, already battling an uptick in fraud, must now brace for an even greater wave of fraudulent activities.

Credit Unions: A Unique Set of Challenges

Credit unions, though similar to banks, are uniquely vulnerable due to their smaller size and limited resources. These community-focused institutions rely heavily on member trust, which is now at risk. The breach poses several challenges:

• Increased Fraud Risk: Like banks, credit unions will face heightened risks of fraud due to compromised Social Security numbers and other personal data.
• Operational Pressures: Smaller teams may struggle to keep up with the increased demand for fraud prevention and customer support.
• Resource Limitations: With fewer resources than larger banks, credit unions must adopt efficient, cost-effective fraud detection solutions.
• Regulatory Compliance: Ensuring compliance with evolving regulations will require new or updated security measures, adding to the operational burden.

The Impact on American Citizens

For the millions of Americans affected, the options for protection are limited and fraught with challenges:

• Credit Freezes and Fraud Alerts: While these measures can help, they come with significant inconveniences and only offer partial protection.
• Monitoring and Reporting: Constant vigilance is required, which can be both time-consuming and resource-draining.
• Identity Theft Protection Services: These services are helpful but often come with fees and do not guarantee complete protection.
• Requesting a New SSN: This is a complex process that can disrupt credit history, making it harder to secure loans, jobs, or insurance.

Moreover, the risk of delayed fraud—where criminals hold onto stolen data for years before using it—makes future prevention efforts even more challenging.

A Technological Solution: RembrandtAi®

In response to these challenges, RembrandtAi® offers a cutting-edge solution for financial institutions:

• Real-Time Fraud Detection: Utilizing advanced machine learning algorithms, RembrandtAi® monitors transactions in real time, allowing for immediate detection and response to suspicious activities.
• Proactive Risk Assessment: By continuously analyzing data patterns, RembrandtAi® can identify potential risks before they impact operations or customer accounts.
• Regulatory Compliance: As data protection laws evolve in response to breaches like this one, RembrandtAi® helps banks and credit unions align with new regulations, ensuring a robust compliance framework.

Looking Ahead: A Call to Action

The National Public Data breach is a stark reminder of the vulnerabilities inherent in our digital infrastructure. For financial institutions, the need for advanced, real-time fraud detection and comprehensive risk management has never been greater. RembrandtAi® provides the essential tools to navigate this complex landscape, protecting assets and maintaining the trust of millions of Americans in an era of increasing cyber threats.

For more information on how RembrandtAi® can safeguard your financial institution, visit rembrandtai.com

The post 2.9 Billion SSNs Exposed in Data Breach appeared first on toolCASE.

1. Check Fraud Spike: An alarming 180% rise in check fraud incidents, marking a significant surge compared to the previous year.
2. Evolving Scam Techniques: A noticeable trend where consumers are tricked into directly transferring funds, showcasing a tactical shift in scams.
3. Sophisticated Account Takeovers: Enhanced fraudster strategies in account takeovers, characterized by smaller, varied transactions for stealth.
4. Progress in Information Exchange: The financial sector’s growing commitment to information sharing marks a stride forward, overcoming past hurdles of legal and data security issues.
5. Detection System Limitations: The widespread issue with single-channel fraud detection systems lacking a comprehensive fraud view.

RembrandtAi®’s Pivotal Impact:

• Instant Fraud Alerts: RembrandtAi®’s prompt alert system is crucial in addressing fast-evolving methods like check fraud and account takeovers.
• Adapting to FedNow: Its compliance features align with new FedNow regulations, ensuring swift adaptation for financial institutions.
• Information Sharing Utilization: By harnessing industry data, RembrandtAi® enhances its fraud detection algorithms.
• Holistic Detection Strategy: It confronts the limitations of single-channel systems by offering a broad-spectrum view of transactions, boosting detection accuracy.
• Future-Ready Algorithms: Continually updated to stay ahead of fraudsters’ evolving tactics, including the anticipated rise in mule accounts and ongoing scams.

In 2024, RembrandtAi®’s innovative, AI-driven approach is essential for financial institutions, providing a robust and adaptive defense in the dynamic arena of financial fraud prevention.

RembrandtAi® is powered by ToolCASE

The post 2024 Financial Fraud Trends appeared first on toolCASE.

A Brief History of Artificial Intelligence… And How Its Transforming Fraud Prevention

Artificial intelligence is not something new. In fact, Ai has been around for over 80 years now. But as the decades have passed, Ai has truly blossomed, offering incredible solutions for almost all business processes.

But for the banking and credit union industry, Ai has become truly transformative. One Ai in particular, RembrandtAi, has emerged as perhaps the single most important tool for detecting and potentially eliminating transactional bank frauds.

Here’s a Brief History of Ai…
And What RembrandtAi Could Do For You

• German “Enigma” machine.
• 1950, Alan Turing created the Turing Test. It was designed to see if humans could detect whether or not they were talking to a machine.
• 1951: The earliest successful Ai program was written by Christopher Strachey.
• 1958: John McCarthy created the Lisp computer language, the standard Ai programming language.
• 1961: the first industrial robot called “Unimate” was created by George Devol. Among the very first Robotic Process Automation (RPA) tools.
• 1964: The first chatbot, “Eliza” was created in the Artificial Intelligence Laboratory at MIT.
• 1965: Edward Feigenbaum introduced “Expert systems.” The first truly successful form of Ai software.
• 1969: The first general purpose mobile robot was created.
• 1995: Richard Wallace created the chatbot “Alice” using natural language processing.
• 1997: IBM’s Deep Blue Ai computer beat Gary Kasparov in a chess match.

It took nearly 60 years of Ai development for a computer to be able to beat a human chess master at his own game. But since the match between Deep Blue and Kasparov, Ai technology has accelerated at a parabolic rate.

• 2008: The voice recognition technology called Siri was created.
• 2011: IBM created “Watson” a question-and-answer computer system capable of answering questions in natural language.
• 2014: Amazon introduced “Alexa.”
• 2014: A a chatbot called “Eugene Goostman” became the first Ai program to pass the Turing Test.
• 2015: OpenAi, the creator of ChatGPT, is founded
• 2021: RembrandtAi, developed by ToolCASE, helps a 16 location Credit Union in Florida reduce fraudulent transactions by 97%!

“In the past year alone, we’ve prevented possible losses to the Credit Union of over $1.8 million in fraud, this has also minimized member impact.  Our team, heavily supported by the real-time RembrandtAi capabilities… reduced fraud dollar losses from branch and digital banking activity as well as debit card activity….

“RembrandtAi allows us to stop fraud from continuing once it has started.  Our Board of Directors and members couldn’t be happier with the results and, of course, our P&L shows the bottom-line impact as well.”

See How Quickly RembrandtAi Can Help Transform
Your Institution’s Bottom Line

www.RembrandtAi.com

The post A Brief History of Artificial Intelligence… And How Its Transforming Fraud Prevention appeared first on toolCASE.

According to Security Magazine, fraud rates at credit unions increased by a staggering 70%. That’s a near doubling in the instances of fraud over the course of just a year.

Simply put, criminals are now specifically targeting credit unions, and, as a result, fraud rates (and costs) have gone parabolic.

Today, for every $1 in fraud, financial institutions are incurring an average of $4.36 in resolution costs. This is putting an enormous strain on credit unions, both financially and reputationally.

But while there seems to be no stopping it (or even slowing its growth) there are tools available to credit unions designed specifically to help mitigate, and potentially eliminate transactional fraud.

In a moment, we’ll reveal why so many credit unions haven’t yet incorporated these tools, and we’ll show you the best-in-class artificial intelligence solution that’s already helped reduce fraud costs at credit unions by over $200 million.

Receive a Full Demonstration on How RembrandtAi Can Help Detect Transactional Frauds in Real-Time, by Clicking HERE

But first, we must discuss some facts on fraud, and why CU executives should be paying closer attention to their members’ concerns.

As recently noted on CFO.com, 7 out of every 10 financial institutions reported fraud losses exceeding $500,000 last year.

Not so surprisingly, CFO showed that a huge percentage of professionals working in fraud related roles at FIs reported an increase in fraud rates year-over-year; and 71% said they’ve increased spending on fraud mitigation.

But, as stated earlier, credit unions (and their members) bore the brunt.

You see, not only have fraud rates increased at credit unions (as they have almost everywhere), but they’ve increased by an alarming 70%.

And, while most financial institutions incurred at least $500,000 in fraud related losses in 2022, one out of every five CUs and community banks reported even bigger fraud losses: ranging between $1 million and $10 million.

And it’s causing incredible reputational harm.

When asked about banking, 74% of consumers say that “good fraud protection” is paramount when opening (or keeping) an account. Yet only 27% of credit union executives invested in modern fraud management and mitigation systems last year, down from 57% in 2021.

Unfortunately, the top concern of credit union executives has nothing to do with fraud. It’s rising interest rates. While this is a legitimate organizational concern, it’s nothing that can be controlled by the organization, and it’s not what’s most concerning to members.

With 74% of consumers citing proper fraud protection among their top considerations when opening an account (or keeping one), the number one concern for CU executives, one they can control, should be member loyalty, and addressing it with modern fraud protections.

It’s why you should immediately consider incorporating RembrandtAi.

RembrandtAi is an all-encompassing, real-time fraud detection and prevention solution for all transactional banking. It incorporates all of your core, offline and online systems into one easy to use interface, alerting your human fraud teams of potential threats as they’re occurring….

Rather than in the old, ineffective way: post-transactional batch data analysis with obsolete legacy systems.

With fraud rates growing at a parabolic rate, and mitigation costs rising just as fast, now’s the time to fight back.

Now’s the time to consider your members concerns and your bottom line…

Now’s the time to incorporate RembrandtAi.

You see, RembrandtAi was developed specifically to help credit unions combat fraud and it has already proven to help save hundreds of millions in losses…

And it’s ready to help yours do the same!

Experience a full demonstration of the remarkable RembrandtAi fraud detection and prevention technology and discover how it helps credit unions like yours save massively on fraud costs, while helping to ease member concerns and solidify your bottom line.

Visit www.RembrandtAi.com or click HERE to schedule your free one-on-one demo and see why even modern financial criminals are no match for RembrandtAi

The post The Growth in Fraud at Credit Unions Has Gone Parabolic And Members Are Highly Concerned appeared first on toolCASE.

Still, other agencies say that number could reach up to 10%, resulting in over $300 billion lost annually to healthcare fraud cases.

The healthcare industry generates insane amounts of data daily, especially regarding financial and transactional data. The billing of healthcare services is a complex task that can result in significant consequences for individuals, providers or businesses when purposely or accidentally conducted erroneously.

While fraud investigators are critical to all operations in the healthcare ecosystem, real-time fraud detection is extremely limited through human-only investigation teams. The amount of fraud is simply overwhelming.

Artificial Intelligence (Ai) software grants a multi-faceted solution which is already being implemented in numerous industries for gathering data, analyzing patterns, predicting potential areas of future threats, and providing real-time fraud detection.

For instance, many financial institutions are beginning to implement Ai technology to help detect and reduce the occurrence of fraud through questionable checks, mobile banking, funds transfers, and card activity both outside of and within typical banking hours.

This type of technology, called RembrandtAi can also be potentially applied to the medical claim fraud/abuse detection and prevention industry.

More on RembrandtAi in just a moment.

Discover how RembrandtAi can help insurance companies detect fraudulent claims and transactions by requesting a full demonstration, HERE

First, let’s examine what exactly healthcare fraud is, its impact in the US, and how Ai may be the key to minimizing its damage.

Types of Healthcare Fraud and Abuse 

Fraud is defined as the intentional act of deceiving or misrepresenting facts, resulting in unauthorized payments or benefits. Typically, healthcare fraud, or abuse, includes actions considered inappropriate, improper, medically unnecessary, or outside acceptable professional conduct standards.

Healthcare fraud or abuse is generally conducted in one of two ways – by the provider or by patients/other individuals – and both can have dire consequences for everyone involved.

Patients can commit healthcare fraud through medical identity theft/swapping. This is also one of the most commonly reported versions of identity theft, with some of the highest reported costs associated with data breaches.

Scammers posing as legitimate health insurance companies often commit healthcare fraud by signing people up for bogus coverage plans or charging their insurance for non-rendered services. In extreme cases, individuals may commit healthcare fraud by providing/billing for health services or equipment under falsified licenses.

But healthcare providers have even more methods available for committing fraud and have been found to be among the largest potential fraudsters in the industry.

For example, Dr. Michael Ligotti, a medical director at substance abuse facilities, was found to have billed insurance companies more than $746 million for fraudulent urine tests and addiction treatments. He was recently sentenced to 20 years… but much of the money may be unrecoverable.

Here are some common healthcare provider frauds that may be discoverable by real-time artificial intelligence:

Extra Payments: medically unnecessary procedures that cause extra payments that are often not covered by insurance plans (i.e., diagnostic testing methods or genetic testing)

Double Billing: submitting more than one charge for the same services.

Phantom Billing: charging for services or procedures that were never performed.

Upcoding: charging for procedures or services that are more expensive than what were given.

Because of its ability to examine and interpret massive amounts of data in near real-time, artificial intelligence has the potential capability to see which providers may be exhibiting a pattern of abuse and could alert insurance fraud teams of the issues before they grow to the level of Dr. Ligotti’s $746 million.

Its Impact on the US Healthcare System and Those Who Use It 

According to the FBI, “Health care fraud is not a victimless crime. It affects everyone—individuals and businesses alike—and causes tens of billions of dollars in losses each year.”

For the consumer, fraud raises the costs of healthcare and insurance premiums, making it even more difficult for the average family to afford it. It can also cause billions of taxpayer dollars to be lost when people or providers commit healthcare fraud through public healthcare systems, like Medicare.

Additionally, patients that receive procedures or prescriptions they don’t need sometimes suffer physical or financial damage that can be life changing.

An effective medical claim fraud/abuse detection system is needed to avoid further rising costs, wasted resources, and potentially dangerous and unnecessary medical procedures.

Traditional Healthcare Fraud Detection Methods and Their Limitations

The False Claims Act of 1863 is the earliest known US law enacted to criminalize fraudulent claims against the government. Healthcare fraud continues to be the primary source of settlements under this law.

In fact, in fiscal year 2022, the US Department of Justice recovered over $2.2 billion under this act, amounting to roughly $6.2 million per incident. But $2.2 billion is just a drop in the bucket when it comes to healthcare fraud, and many if not most frauds go completely undetected.

You see, traditional ways of finding and proving fraudulent claims involve gathering data and having teams of investigators review it through auditing processes. This can take months or even years of pouring over information and offers little to no real-time fraud detection, as issues are often not discovered until after the payments have been made.

In the Dr. Ligotti case, for example, he apparently ran his scam for nearly a decade.

But thanks to recent technological advancements, a medical claim fraud/abuse detection system can now effectively diminish successful frauds with support from Ai software.

Benefits of Ai-Backed Healthcare Fraud Detection Systems

Artificial Intelligence technology provides incredible benefits for all sorts of business processes, especially for handling data, financial transactions, and for security and fraud protection. Ai software works by analyzing copious amounts of data, learning financial patterns, alerting to potential discrepancies, and increasing overall efficiency.

When deviations appear, Ai can flag those accounts (either individual or provider) and conduct real-time fraud analysis before any payments or claims are confirmed.

While it is not entirely foolproof, Ai software is an exceptional tool for making the lives of fraud investigators much easier. Detecting healthcare fraud in real-time allows the government and private insurers to find the guilty parties much faster, reduce wasted resources, and mitigate the adverse effects victims may face.

Introducing RembrandtAi

An Ai-backed medical claim fraud/abuse detection system is more efficient at detecting and preventing fraudulent transactions than human fraud teams alone.

RembrandtAi has the ability to flag for suspicious transactions near-instantly, could accumulate and “map” individual provider claims submissions (to discover potentially illicit billing patterns) an allows insurers, both public and private to quickly review these transactions before claims are paid.

As healthcare continues evolving with more technological integrations, RembrandtAi presents a scalable Ai solution that can save the government, insurers, and all Americans billions of dollars. Artificial intelligence is the key to protecting the healthcare industry as we advance into the tech-based future.

Discover how RembrandtAi can help insurance companies (both private and public) detect fraudulent activity by requesting a full demonstration, HERE

The post How Real-Time Ai Can Help Detect Healthcare Fraud appeared first on toolCASE.

For banks and credit unions serious about mitigating the costly effects of fraud (we’ll get into the numbers momentarily), a more technology-centered approach to fighting payments fraud must involve the incorporation of artificial intelligence (Ai) with human fraud teams.

But until recently, only large and mega-cap commercial and regional banks had enough resources to include Ai in their budgets to fight fraud. Thankfully, recent advances like RembrandtAi have made real-time fraud detection and prevention economically accessible to institutions of all sizes, including small to medium-sized credit unions.

We’ll discuss more on RembrandtAi in a moment.

First, the numbers.

Of Treasury & Risk’s 2023 Payments Fraud Survey respondents, 56% reported one or more fraud attempts in the previous year, with 60% saying their top approach to minimize fraud is to “rely on more training for teams involved in initiating and approving payments.”

Earlier this year, the Financial Crimes Enforcement Network (FinCEN) reported a remarkable 84% increase in check fraud over the previous year. The respondents from the T&R survey have all but confirmed this astonishing number.

From paper checks alone, 50% of the respondents said they fell victim to fraud, with wire transfer fraud being reported by 33%, and ACH transfer fraud reported by 10%.

As stated earlier, 60% of respondents are fighting fraud with better employee training. And clearly, more intensive employee training is needed.

But as Treasury & Risk notes, “That means you’re only as good as your newest, least-trained frontline employee. But automation can be constructed to be as good as your best employee. So that raises the standard and equips organizations to deal with fraud more rapidly.”

Credit Union fraud rates increased by 70% in 2022. So, unless institutions adopt a more modern, technology-centered approach to fighting fraud, mitigation efforts will likely continue to fail, and resolution costs may continue to rise.

In fact, a recent industry survey found that 41% of Credit Unions and community banks had fraud losses ranging between $500k and $1 million last year. 20% of CUs and CBs had fraud losses between $1 million and $10 million.

“It’s a huge paradox to see that companies are aware that fraud is getting more and more sophisticated and see this complexity as a major blocker in their fight against fraud, but still think they’ll be able to stop fraud with manual methods… You can’t fight cyber-attacks with a ‘human only’ policy…

“Technology should be used to enhance humans, not replace them. Software is one line of defense. Humans are one line of defense. You’re always more secure having two lines of defense” – T&R.

And that best-in-class, second line of defense your human fraud team should deploy is RembrandtAi.

We noted earlier how artificial intelligence solutions were once only accessible by well capitalized institutions. But thanks to RembrandtAi, this technology-centered fraud response is now available to institutions of all sizes.

Its real-time capabilities have already allowed financial institutions to save hundreds of millions in fraud costs, and it can now help yours achieve savings too.

RembrandtAi is an all-encompassing, real-time fraud detection and prevention solution for all transactional banking. It incorporates all of your core, offline and online systems into one easy to use interface, alerting your human fraud teams of potential threats as they’re occurring….

Rather than in post-transactional batch data analysis.

When opening a new account, or remaining at their current institution, 74% of depositors say they’re concerned about “good fraud protection.”

Don’t simply offer them good fraud protection.  Deliver them the best.

Consider experiencing a full demonstration of the remarkable RembrandtAi fraud detection and prevention technology and discover how it helps financial institutions like yours save massively on fraud costs, while helping to solidify your bottom line.

Visit www.RembrandtAi.comor click HERE to schedule your free one-on-one demo and see why financial criminals are no match for RembrandtAi

The post “Today’s Fraud Risks May Require a More Technology-Centered Response.”-Treasury & Risk appeared first on toolCASE.

2023 will likely be worse.

But these growing losses are not the fault of fraud teams at banks and credit unions. Clearly, many FIs believe they’re doing the best they can to fight back, but the problem lies in the antiquated tools they’ve been using. Tools that do not use artificial intelligence to detect fraud in real-time.

Today, with banks and credit unions losing incredible amounts of institutional and depositor capital to fraudsters, and fraud teams unable to keep up with the volume of new incursions, it’s high time to not only spend more appropriately on fraud mitigation, but to rethink the entire fraud detection process, and turn those fraud costs into fraud savings.

RembrandtAi, the world’s most advanced, customizable, real-time artificial intelligence fraud detection and prevention solution is the answer. Simply put, when used in conjunction with your fraud team, there is no better Ai fraud detection software anywhere. Period.

Now, because of the nature of digital banking, p2p payments, and the upcoming introduction of real-time FedNow transactions, banks and credit unions will undoubtedly see fraud costs grow even higher this year.

In order to fight back in the most advanced way possible, your fraud team will need Ai fraud detection software. Or, more specifically, the real-time fraud detection and prevention capability that RembrandAi can empower them with.

Why real-time fraud prevention?

Well, most fraud teams, especially those not using RembrandtAi’s real-time capabilities, often only discover fraud in post transactional batch data. Or, well after the fraud has occurred, and monies transferred out. This is one major reason why we’ve seen an astronomical percentage of institutions losing $500k or more last year.

You see, antiquated legacy fraud solutions, many of which were designed back in the 1980’s, do not allow for real-time fraud detection and prevention.

RembrandtAi, on the other hand, does!

In fact, RembrandtAi has already been responsible for saving the institutions who’ve implemented it, hundreds of millions in fraud losses. Yes, hundreds of millions.

And now, it can help do the same for yours.

Receive a Full Demonstration on How RembrandtAi Can Assist Your Fraud Team in Uncovering Transactional Frauds, in Real-time, By Clicking HERE

By its nature, RembrandtAi has far more analytical and processing prowess than human fraud teams. Unfortunately, the human eye is not as adept at spotting fraud as Ai is, and the legacy fraud solutions used by fraud teams are highly limited, outdated, and obsolete.

While many suspicious activities are spotted by human fraud teams, these activities are most often noticed well after transactions have occurred; and are rarely detected as they’re happening.

RembrandtAi can detect unusual transactions in real time, and alert fraud investigators of this activity, in real time.

Our customers tell us every day that having RembrandtAi is an essential part of being fiscally responsible, putting the best available technology to work to safeguard depositor interests.

Leading banks and credit unions that have deployed RembrandtAi demonstrate that legacy batch systems used by some banks have no place in a modern, member centric financial services world.

While you can’t control external fraud forces, you can control your level of preparedness and reduce or potentially eliminate fraud with RembrandtAi.

Keep in mind that although RembrandtAi can be fully automated, it is purpose designed to work alongside human fraud teams, not eliminate them.

In fact, it was developed to eliminate legacy fraud solutions and the poor fraud detection results they offer, while greatly enhancing the capabilities of human fraud teams.

What are False Positives Costing You?

Banks and credit unions maintain and continually obtain very large and ever-growing databases of transactions. Many of which may be flagged as fraud in batch data analysis.However, recent research found that many FIs, especially those using legacy solutions, have a false positive rate above 90%.

As stated earlier, 71% of financial institutions had to increase spending on fraud mitigation last year. The cost of investigating false positives is partly to blame.

You see, investigators are spending a lot of time and a whole lot of money looking into “fraud” that was, in fact, a legitimate transaction; all the while causing friction between the institution and its depositors.

To speed up the process, lower false positives and reduce investigatory costs, Ai fraud detection software from RembrandtAi is the solution.  It not only helps reduce real fraud losses and false positives, but as a result you’re less likely to interfere with legitimate transactions, keeping the relationship with your depositors on a much stronger footing.

Remember, institutions who’ve implemented RembrandtAi have reduced fraud costs by hundreds of millions of dollars.

With the likelihood of fraud costs growing even higher this year, now’s the time for yourinstitution to deploy RembrandtAi as well. It works hand in hand with your fraud team to deliver the most advanced Ai fraud detection and prevention system ever developed.

If you’re at all skeptical about its remarkable capabilities, we urge you to participate in a full demonstration. Simply click here to schedule your demo and begin reducing your fraud costs, perhaps faster than you ever thought possible.

The post Why Real-Time AI Can Detect Bank Fraud Better Than Fraud Teams Alone appeared first on toolCASE.

But now, CNBC, the largest financial tv and web network on earth, has just exposed the terrifying facts. And once consumers realize the potential ramifications (which have already begun), account holders at certain institutions may begin to flee for more secure ground.

However, while some banks and credit unions may fall victim to massive depositor outflows, others who are properly positioned, right now, may stand to see depositor inflows and a growth in capitalization.

It all depends on how the facts are handled, and if the proper precautions are immediately put in place.

Receive a Full Demonstration on How RembrandtAi Can Help Avert Depositor Outflows and Better Protect Against Fraud, HERE

Before we discuss the CNBC exposé, how the public may handle it, and how certain financial institutions may actually benefit from it, a little background information is needed.

In 2017, Equifax announced a data breach that affected 147 million people.

Last November, TransUnion announced a data breach that may have affected 200 million people.

And in January, Experian announced it had a major hole in its security system that allowed criminals to access an unknown number of consumer credit reports.

Combined, these three major credit bureau hacks may have allowed for the personally identifiable information (PII) of potentially every adult American consumer to be exploited by criminals.

As a result, billions of dollars have already been lost to fraud, and billions more are expected, as the problem is only growing worse.

Now, thanks to a major story by CNBC, the American consumer has finally become aware of the full gravity of the situation…

And because of this, banks and credit unions should be on high alert.
Reads the headline of the CNBC exposé. CNBC had over 169.5 million visitors to its website in March, the same month it published the story. That’s a massive number of eyeballs exposed to a massive problem, and nearly all of these visitors likely hold assets at a bank, credit union, or both.

And now they have questions. Questions your institution better be prepared to answer.

Questions like:

Should I be worried?

Are you still using an ineffective, outdated fraud prevention system?

Or are you using RembrandtAi, the world’s most advanced, real-time, artificial intelligence-backed fraud detection and prevention system?

The system that’s already proven to prevent hundreds of millions in fraud losses?

Is my money safe with you?

If it’s not, can you tell me which institutions have deployed RembrandtAi?

… And how do I move my deposits to them?

Receive a Full Demonstration on How RembrandtAi Can Help Avert Depositor Outflows and Better Protect Against Fraud, HERE

If your institution isn’t already fielding questions like these from your depositors, chances are, you soon will.

You see, the $8.8 billion lost to fraud in 2022 is only what’s been reported to the FTC by consumers themselves.

But it’s not a true account of what really happened.

According to Javelin Strategy & Research, American consumers lost nearly five times that amount to fraud last year. In fact, Javelin says the true losses were $43 billion, not $8.8 billion.

Further, their study showed that 100% of those losses were a result of identity frauds. Frauds that generally led to one thing: theft of depositor assets, and massive losses at the institutional level.

How massive? Well, data compiled by LexisNexis show the costs associated with all frauds rose by 20% last year, with financial institutions bearing the brunt.

In fact, for every $1 stolen in a fraud attack, banks and credit unions found themselves on the hook for an average of $4.36 in related mitigation costs.

This means a $10,000 fraud cost institutions an average of $43,600 to resolve.

The cat’s out of the bag. Institutions and consumers alike have begun to demand better fraud protection. And with more fraud certainly coming, the time to deploy that better fraud protection is right now.

The solution is RembrandtAi.

Remember, institutions who’ve implemented the real-time capabilities of RembrandtAi have already reduced fraud costs by hundreds of millions of dollars.

That’s a massive savings to your bottom line.

Importantly, especially in this scary environment, once your institution deploys RembrandtAI, you should immediately announce these new fraud protections to your depositors.

They’ll be glad to know you’ve got their assets in front of mind and are employing the most advanced technology to help combat fraud.

They’ll be glad to know you’re on top of fraud, and some of the scary headlines they read about shouldn’t overly worry them…

They’ll rest assured knowing you’re using RembrandtAi.

And they’ll be glad to keep their deposits at your institution.

If you’re at all skeptical about the remarkable capabilities of RembrandtAi, we urge you to participate in a full demonstration.

Don’t fall victim to depositor outflows. Instead, position your institution for potential depositor inflows, and better protect your members from fraud losses with RembrandtAi.

For a thorough demonstration of RembrandtAi, Simply click HERE.

The post The Dark and Dangerous Secret the Banking and Credit Card Industries Have Kept Hidden From Consumers… Is Now All Over CNBC appeared first on toolCASE.

 “You created the perfect weapon for criminals to use, and they have used it, and you have not stood behind your customers.” – Sen. Elizabeth Warren

It’s estimated that $440 million was lost by Zelle users through scam transactions in 2021 alone. And last year, 2022, consumers reported losing $1.59 billion through various bank transfer/payments scams.

Unfortunately, as more consumers embrace payments systems like Zelle, and with FedNow coming online, real time payments fraud is very likely to rise in both volume and dollar terms this year; and the costs of Zelle fraud to banks and credit unions may only grow.

A recent FICO survey of 14,000 global consumers showed:

• 72% of Americans received an unsolicited text, email, phone call or other outreach they thought was part of a scam.
• Nearly half of respondents say their family and friends have been victims of scams.
• 25% of Americans lost $5K to scams, while 46% lost up to $500.
• 64% think banks should have better fraud detection systems.

• 59% take responsibility for sending funds to a scammer.
• 14% say their banks are responsible if they send a payment to a scammer.
• 10% say the bank receiving the payment shares the responsibility.

While a majority (59%) took personal responsibility for sending funds to scammers via platforms like Zelle, 64% believe their financial institutions should be doing far more when it comes to fraud detection and prevention.

And they’re right.

By implementing an effective Zelle fraud strategy that utilizes real-time fraud detection and prevention, powered by artificial intelligence, not only could your institution be keeping your depositors more safe from Zelle fraud, but it would likely alleviate the concerns of 64% of the population who believe you should have a better, modernized fraud detection system.

And there is no better real-time transactional fraud detection and prevention system than RembrandtAi. More on this in a moment.

First…

The Costs of Zelle Fraud to Banks and Credit Unions

Zelle fraud can result in direct financial losses for banks and credit unions. When a customer’s account is compromised, and fraudsters steal their money, the financial institution may be liable for lost funds.

As a result, the bank or credit union may suffer significant financial losses. These losses include not only reimbursement expenses for frauds they are liable for, but for the expenses involved in investigating frauds, whether the institution is liable or not.

Potential New Regulatory Policies

Senator Chris Van Hollen (D-MD) said, “Scammers have been able to defraud millions of Americans through Zelle and other payment platforms due to weak security protections and limited recourse for those who have lost money.

“More must be done to stop these scams and that’s why last year several of my colleagues and I urged the banks in the Zelle network to do more to protect their customers.”

In a statement regarding Zelle fraud, a spokesperson from Early Warning Services recently said, “I can confirm that Zelle is revising its network rules as part of ongoing efforts to protect users against the most recent fraudulent schemes. We will not issue details because we then risk tipping off the fraudsters.”

While Early Warning Systems (Zelle) itself announced some new fraud protections this spring, federal and state regulators may be forced to go a step further. And this may eventually mean banks and credit unions could be responsible for more depositor losses than they currently are.

Customer Protection Regulations

A potential upcoming rule your institution may be required to follow involves “customer protection regulations.” For example, the Consumer Financial Protection Bureau (CFPB) provides guidelines on best practices for reducing Zelle fraud, which includes recommendations for client education as well as fraud detection and prevention.

Fines And Penalties

When financial institutions like banks and credit unions don’t follow the current rules set by regulators, they might be hit with penalties like fines. A bank can face monetary fines and other penalties that affect its operations, such as a halt to accepting deposits or processing transactions. Should the regulatory bodies institute new rules or laws, these fines (and consumer reimbursements) may grow substantially.

Reputation Damage

The reputation of a financial institution might take a serious hit if it experiences multiple cases of Zelle fraud and refuses to reimburse its depositors.

If consumers lose money due to fraud on the Zelle platform, they may decide that their bank or credit union is not doing enough to safeguard them, and they may stop using the institution altogether. Depositor outflow should be a serious concern to every institution that has not yet deployed modern artificial intelligence-based fraud detection and prevention systems.

And there is none better than RembrandtAi.

Introducing RembrandtAi

RembrandtAi utilizes advanced artificial intelligence to identify and prevent fraudulent transactions. Because it operates in near real-time, almost any and all fraudulent transactions could be immediately flagged for investigatory review.

Keep in mind, this occurs in real-time, not after data is batched.

RembrandtAi can be automated to ensure your institution and your depositors are better protected from fraudulent activity. With RembrandtAi, detecting and preventing fraud has never been easier.

Our AI-based, real-time fraud detection and prevention system utilizes top-of-the-line, customized and adaptive analytics, a type of predictive analytics that collects and analyzes real-time data rather than historical data alone.

While fraudsters are constantly inventing new ways to fool systems, RembrandtAi prioritizes detecting new fraud techniques by analyzing and studying current trends and predicting where new frauds may occur in the future.

If you had an opportunity to cost effectively reduce the amount of fraud, and fraud reimbursements to your members, and better assure they remain as members of your institution, you’d surely jump on it, right?

RembrandtAi gives you that opportunity.

Discover how RembrandtAi can help detect Zelle fraud, and reduce overall transactional frauds at your institution by visiting us HERE.

The post The Costs of Zelle Fraud to Banks and Credit Unions appeared first on toolCASE.

FedNow Set to Launch in July…
4 Things the Fed Will Provide to Help Combat Fraud
And 1 Thing Institutions MUST Do Themselves

The long-awaited launch of FedNow is almost here. This July, the instant, 24/7/365 payments and money transfer system will be implemented. While this is great news for consumers and small businesses, it will present some major challenges for banks and credit unions.

Because of the nature of FedNow, there will be practically no time for fraud teams to discover criminal transactions; and there is a strong likelihood we will experience a dramatic uptick in all kinds of transactional frauds.

To help stem the tide, the Federal Reserve has provided for some basic protections. Some of these elementary protections include:

1 – The ability for a bank or other financial institutions to establish risk-based transaction value limits.

2 – The ability to specify certain conditions under which transactions would be rejected, such as by account number (a “negative list”).

3 – Message signing, which will validate that the message contents have not been altered or modified.

4 – Reporting features and functionality, including reports on the number of payment messages that were rejected based on a participating financial institution’s settings.

While the Fed will offer at least a basic level of fraud protections, clearly this will not be enough. With instant payments comes instant fraud. Your institution MUST be able to address fraud in a FedNow world, in real-time.

Introducing RembrandtAi, the world’s most advanced, real-time transactional fraud detection and prevention system. Financial institutions who’ve implemented RembrandtAi say:

• RembrandtAi is an essential part of being fiscally responsible.
• RembrandtAi is the best available technology to safeguard depositor interests.

 

• Leading CUs say legacy batch systems are no match for the real-time power of RembrandtAi

 

• “In the past year alone, we’ve prevented possible losses to the Credit Union of over $1.8 million in fraud; this has also minimized member impact.”

 

• “Our team, heavily supported by the real-time AI capabilities of RembrandtAi, have reduced fraud dollar losses from branch and digital banking activity as well as debit card activity.”

 

• “RembrandtAi allows us to stop fraud from continuing once it has started.” 

 

• “Our Board of Directors and members couldn’t be happier with the results and, of course, our P&L shows the bottom-line impact as well.”

 

• Hundreds of millions of losses have been averted when implementing RembrandtAi

 

FedNow will begin in July. You will almost certainly see a massive increase in transactional fraud at your institution. Better protect your depositors with the most advanced fraud detection and prevention system ever devised.

Discover The Real-Time Power of RembrandtAi

www.RembrandtAi.com

 

The post FedNow Set to Launch in July… 4 Things the Fed Will Provide to Help Combat Fraud And 1 Thing Institutions MUST Do Themselves appeared first on toolCASE.