Catalyst News

Catalyst Corporate Offers New Solution to Help Credit Unions Fight Fraud

by Catalyst Corporate | Jul 13, 2021

To help credit unions combat rising instances of fraud, Catalyst Corporate is now partnering with Advanced Fraud Solutions (AFS) to offer a state-of-the-art service designed to help minimize check fraud losses. The new solution, called TrueChecks®, arrives just in time – as stimulus payment-related fraud has sharply increased since COVID-19 economic recovery efforts began last year.

Given the drawn-out pandemic, coupled with an enormous amount of uncertainty, experts say susceptibility to fraud seems prevalent. The Federal Trade Commission received more than 2.1 million fraud reports, including check fraud, from consumers in 2020. Consumers reported losing more than $3.3 billion to fraud in 2020, up from $1.8 billion in 2019, according to recently released data.

Despite their decreasing volume, checks continue to be the payment method most impacted by fraud. They remain a frequent, lucrative target, with the average counterfeit check or money order scam costing $1,500 per item, according to a Better Business Bureau report.

Between teller turnover, technology challenges and limited resources, spotting fraudulent deposits at credit unions can be challenging. But TrueChecks – now offered by Catalyst Corporate – can help.

TrueChecks, which uses Advanced Fraud Solutions’ fraud detection platform, is designed to help catch fraudulent checks at the point of presentment.

“TrueChecks can provide your credit union useable data within one second of deposit,” said Karen Coble, Catalyst Corporate’s Vice President of Sales. Advanced Fraud Solutions was founded in 2007 by credit unions, with the belief that the best way to fight fraud is to prevent it, she added.

TrueChecks’ comprehensive database contains account level information from thousands of financial institutions. Additionally, the database features more than 10 years of account-level, historical check fraud data from customers, processors and third-party sources.

Once an item is matched against the TrueChecks database, tellers receive real-time results on duplicates, counterfeits, non-sufficient funds and closed accounts, among other types of fraud alerts. TrueChecks provides tellers with simple Accept (Green), Hold (Yellow) or Deny (Red) responses to help communicate potential risk.

“Using TrueChecks, credit unions say they see quick results,” Coble said.

TrueChecks is available with Catalyst Corporate’s TranzCapture suite of deposit services, where it can perform real-time check verification across deposit channels, including Teller Capture, ATM/ITM Capture and Mobile Capture. "Real-time verification is also available via direct access to the Advanced Fraud Solutions portal,” Coble said.

For more information on how your credit union can combat check fraud with TrueChecks, contact us today.