Skip to content

Reducing Fraud Losses

Question: 
We are getting hit hard with fraudulent new accounts who deposit $50 to open the account, then deposit a bogus or NSF $9,000 check two days later and withdrawal that amount before the check is returned. Any ideas how to legally stop this from happening without offending legitimate new customers?
Answer: 

Some alternatives include:

  • Change your availability rules and disclosures for new accounts under Reg. CC
  • Train employees to see this pattern and encourage them to verify such checks before accepting them for deposit
  • Train employees to see this pattern and refuse to accept these checks for deposit (make them go to collection)
  • If not already doing so, verify your new customers using a negative file search like ChexSystems and/or pulling a credit bureau report


Increase your tellers' expertise on holds -- and reduce your fraud losses. Ken Golliher explains how in a live BOL Learning Connect Webinar Wednesday, January 8th -- Holds for Tellers. For just $199, you not only get to have a roomful of employees at one location, you also get the ability to replay the archived program at a later date and time of your choosing, so you can train your employees when it's convenient for you! REGISTER NOW!

First published on BankersOnline.com 1/6/03

First published on 01/06/2003

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics