Scams and Fraud
These two words sort of have a certain “scare” factor so in the spirit of Halloween, forget the tricks, I’ve got not one but two treats for you, courtesy of the Federal Reserve!
Did you know that the Federal Reserve offers valuable resources to help educate your employees and members about scams and fraud? The resources I am specifically referring to are the Scams Mitigation Toolkit and the Check Fraud Mitigation Toolkit.
In response to the rise in payment scams and check fraud, the Federal Reserve released these resources in August, but they were also recently enhanced earlier this month with new modules and additional materials. These toolkits provide ready-to-use resources for financial institutions that not only raise awareness but also outline practical ways to detect and mitigate fraudulent activity in today’s evolving threat landscape.
The Scam Mitigation Toolkit and the Check Fraud Toolkit each include multiple modules featuring educational resources, real-world fraud scenarios, and prevention strategies. These materials are delivered through short and quick videos, downloadable and printable infographics, and other practical tools to help identify and address scams and fraud. These toolkits are great resources to add to your fraud fighting arsenal.
Below is a quick look at what each module in the toolkits covers:
Module 1: Scam Basics. This module covers the basics and offers a foundational understanding of scams – explaining what they are, why they matter, highlighting common examples and why scams are successful. Additional resources in this module cover topics such as how scams occur among others.
Module 2: Scam Tactics and Impacts. This module covers how scams offer an entry point for criminals to commit other types of payment fraud. This module includes a quiz to test understanding by reviewing scenarios and spotting the red flags. Additional materials available for download/print include a three-page document detailing how technology is used to manipulate and deceive.
Module 3: Scam Prevention and Detection. This module includes videos on the preventing and detecting scams. Printable resources include items such as an infographic on scam detection and mitigation specific to financial institutions, and one that covers scam detection strategies tailored for financial institutions, among other items.
Module 4: Scam Classifier Model. This module covers the Scam Classifier Model and its use for classifying an incident as a scam. The Scam Classifier Model can be used with the Fraud Classifier Model but either can be used independently of each other. Printable resources provide further instruction on how to use the Classifier(s) to categorize scams or fraud based on the type of deception involved. By using the Classifier(s) institutions can further assist with industry wide collaboration and trend tracking in combatting scams and fraud.
Module 5: Scam Scenarios. This module further explores the Scam Classifier Model and its use to identify scams. Additional materials in this module include printable infographics that are specific to common scam types such as the bank imposter scam as well as other documents.
Module 6: Scams Information Sharing. This module provides details on the efforts of the Scams Information Sharing Industry Work Group.
The Check Fraud Mitigation Toolkit
Module 1: Check Fraud Basics. This module covers what is check fraud, the primary types of fraudulent checks and provides an overview of how check fraud may be committed. It offers scenarios to test knowledge, and printable resources covering such topics as understanding check processing.
Module 2: Check Fraud Schemes. This module covers common check fraud schemes. Printable resources in this module include items on check fraud schemes, a three pager on the anatomy of check kiting, and other resources relevant to check fraud schemes.
Module 3: Preventing and Detecting Check Fraud. This module covers the common practices used to prevent and detect check fraud. Resources supporting this module include videos on deposit fraud and in-clearing check fraud, as well as other printable resources.
Scams and check fraud result in billions of dollars of losses each year. Not only is there the obvious monetary cost but scams and fraud undermine trust and can cause disruptions to the “day-to-day” for consumers, institutions, and businesses because of the time and resources required to investigate and resolve fraudulent claims. As fraud schemes become more sophisticated, the ability to recognize them is an advantage in combatting these threats. Knowledge is power.
Looking for compliance training on fraud and security threats? Attend the Fraud and Security Virtual School in December!