How To Recognize And Investigate Bank Fraud
Whether internal or external, banking fraud is detrimental to any financial institution, and you must address fraud as soon as it arises. Polonious software gives banks and financial institutions the ability to identify banking fraud early, better manage fraud investigations, and improve security measures and protocol to avoid future banking fraud instances. We are passionate about helping with bank fraud investigation with our innovative software, allowing fraud investigators to streamline their investigative processes by automating many administrative tasks. Here are a few tips on recognizing and dealing with banking fraud.
The different types of bank fraud and how to identify them
As technology improves, it is becoming easier to identify and prevent bank fraud. Polonious is fraud case management software that aims to be future-proof by continually adapting to the finance industry’s unique digital needs. The software integrates with fraud detection software, so that your investigation team can start investigating as soon as transactions are flagged as being suspicious. Here are a few common examples of bank fraud.
- Internal fraud. Most employees at banks and financial institutions are hardworking, honest people. Unfortunately, the occasional case of internal bank fraud is not uncommon. Internal fraud can look like an abuse of administrator privileges, negligence, or theft. Polonious provides whistleblower options, so your staff can report misconduct and fraud when they see it.
- Card fraud. Debit or credit card fraud is one of the most common types of bank fraud worldwide. A few different card fraud types, such as card skimming, counterfeit cards, and card not present fraud. You can integrate Polonious fraud investigation software with software such as PRM. When you mark transactions as fraudulent, Polonious APIs can be used to automatically open a case in Polonious, ready for investigations to commence. This reduces manual labor and the potential for human error, copy & pasting information between the fraud detection system and the fraud management system.
- Credit application fraud. There are several types of credit application fraud, but each involves submitting false or manipulated information to obtain credit from a bank. Whether these people are working under synthetic aliases or attempting identity theft, credit application fraud has increased as more financial institutions switch to an online application service.
- Money laundering. When done carefully, it can be difficult for financial institutions to spot money laundering schemes. Signs of money laundering include;
Increased transaction frequency- Borrowing money from the bank or maxing out credit cards and then paying them off in full
- Paying loans or installments via cash or check rather than digital transfer
- Association with other accounts showing high-risk activities
What is the bank fraud investigation process?
When a bank fraud investigation is launched, it tends to follow a pretty standard procedure. Polonious software simplifies this process by providing fraud case management software that automates and streamlines fraud investigations.
- Step 1: Detecting fraud. If any of the above types of fraud are detected, a case is opened. Polonious can integrate with other software, so when fraud is detected, it will automatically initiate a case. Additionally, Polonious can help find fraud patterns that may have otherwise been undetected with comprehensive reporting and easy-to-use case updates.
- Step 2: Investigation. The length of the investigation phase varies depending on the severity of the fraud. However, Polonious software makes case turnarounds faster and more efficient with administrative automation, which means your team can spend more time working on the subject’s complex issues rather than focussing on tedious documentation. Your team will be able to close cases far more quickly and reduce the backlog of open cases.
- Step 3: Reimbursement. Once the investigation has been closed, the findings can be passed on to financial institutions, which can reimburse any customers involved. When your institution uses Polonious, you can be confident that the results are accurate, compliant, and auditable.
What sets Polonious Systems apart?
At Polonious, we are proud to be leaders in the provision of bank fraud investigation software and fraud case management software. There are a few things that set us apart from our competitors in this space.
- We are committed to advancements. At Polonious Systems, we understand that the rapidly changing landscape of digital technology affects every industry differently. We have a team of incredibly experienced software developers, software engineers, and IT specialists working tirelessly to ensure that our software is the most advanced on the market. We are always looking for ways to pioneer with our systems, and we will never stop adapting and changing to meet our clients’ needs better.
- We are experienced. Our software was developed by experts in investigations, software engineering, and IT. Plus, Polonious co-CEOs, Alastair Steel and Stuart Guthrie, have over 25 years of experience, each in their respective fields in fraud investigation and IT entrepreneurship. Because of this practical experience, we can provide financial institutions with technology that addresses issues unique to their specific industry.
- We are passionate about our clients. As experts in private investigations ourselves, we understand and respect our clients’ work and the investigation process. We are dedicated to providing software that aids them with their jobs, delivering cutting-edge tools that allow them to conduct higher-quality investigations.
When it comes to bank fraud investigation, Polonious Systems can help
Since 2005, Polonious Systems have provided scalable workflow management and risk assessment software to businesses of all shapes and sizes. We are committed to staying ahead of technological advancements and providing advice and support with IT capabilities across insurance investigation, banking, private investigations, and education. We are renowned for our wealth of experience, professional conduct, and willingness to support our clients comprehensively. If you are looking for software that helps your bank fraud investigation, contact the Polonious Systems team and find out what we can do for you.
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