The Challenge
Our client, a leading U.S. bank faced a growing wave of check fraud across multiple channels, including in-branch, mobile, and ATM deposits. Fraudsters were exploiting gaps in real-time detection, leading to significant financial losses and customer dissatisfaction. The bank sought a robust, scalable solution to detect and mitigate fraudulent activities without adding friction to legitimate customer transactions.
The Solution
The bank adopted Valid Systems' Real-Time Loss Alerts (RTLA), leveraging its cutting-edge machine learning technology to proactively monitor, detect, and alert fraud risks across all deposit channels. RTLA integrated seamlessly with the bank’s existing fraud management infrastructure, delivering real-time insights and enabling the bank to take immediate action on suspicious activities.
Key features included:
- Dynamic fraud detection ML model to identify patterns indicative of check fraud and charge off loss
- Actionable alerts that prioritized high-risk transactions for manual review.
- Customizable thresholds to balance fraud prevention, operational efficiencies and customer experience
The Results
Within six months of implementation:
- Reduction in check fraud losses by 73%, translating to millions of dollars saved.
- Enhanced detection accuracy, reducing false positives by 40%.
- Improved operational efficiency, with a 25% decrease in manual review time for flagged transactions.
- Positive customer feedback due to the seamless nature of the enhanced fraud prevention measures and false positive reduction.
