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Intellicheck Blog


  • Mobile identity verification is not new technology, but the lockdown has made a viable verification system more critical than ever. With so many customers conducting their banking from mobile devices, the risk of application fraud has never been higher. 

    Fraudsters can use personal information to open a bank account under someone else’s name or use synthetic identities to pose as first-time customers.

    An up-to-date mobile identity verification process ensures that the customer being served is who they say they are and that your bank can catch synthetic identities before they become fraud.

  • It is high time for businesses such as banks and large retailers to invest in and integrate fraud technology into their existing infrastructure. The COVID-19 pandemic has forced businesses to shift to remote operations and working environments. However, this comes at a hefty cost considering every dollar of fraud now costs a U.S. business $3.36. 

    Since the shift to a remote environment, fraud has increased by 7% due to the lack of barriers and preventive measures in online environments. To keep it simple – fraud can be detrimental to your business resulting in thousands of dollars (if not more) in lost revenue. Therefore, your business must deploy solutions to catch fraud before it can cost your business.

  • Fraud risk is the likelihood of an organization or business being subject to fraudulent activity. Banks and retailers use several methods to prevent fraudulent activities. To mitigate any fraud risks and be AML compliant, you need a fraud prevention team to stop cybercriminals from accessing your system and data. This fraud prevention team is responsible for vetting all processes to ensure no internal leaks or external threats can hurt your organization. 

    That said – there are modern and unique fraud risk management solutions that every financial institution and retailer should have in place.

  • Chargebacks occur when a buyer requests a reversal of a credit card payment that is issued from the bank. This was created as a way to protect consumers from merchant scams but has since evolved into a way for individuals to commit what is commonly known as “friendly fraud.”

    Friendly fraud occurs when a consumer abuses the chargeback process put in place to protect them. This is often caused by an individual claiming legitimate purchases are fraudulent and stealing the product they were given. Once a chargeback has been issued, your chargeback merchant rights become relatively limited. That said, it is important to ensure you are protected by employing chargeback insurance. 

    There are several components to consider when it comes to choosing the right chargeback insurance for you. Here’s what you need to know:

  • Commercial businesses are always vulnerable to break-ins and thefts. However, some sectors, such as retailers, are more susceptible to less obvious forms of theft, such as credit card chargeback fraud. 

    Chargeback, also known as “friendly fraud,” occurs when a cardholder disputes a financial transaction and gets the payment reversed by their bank instead of contacting the merchant for a refund. These reversals usually involve customers abusing the chargeback facility to commit fraud. 

    Obviously, not all chargeback claims are fraudulent; however, the percentage of chargeback frauds is growing exponentially every year.

  • It’s no surprise that society is shifting from in-person activities to online transactions. Especially given the impact of the COVID-19 pandemic changing the way we interact.

    From retail shopping to school classes, every niche involving in-person activity has felt the impact of the COVID-19 pandemic. As businesses have adapted, the remote environment looks like it will be here to stay for a long time, even beyond the pandemic. While this shift has been convenient for businesses that are easily able to shift to a “work from home” format, it has also ushered in its own sets of challenges for banks and financial institutions looking to prevent fraud activity, such as “person not present” fraud. 

  • There has been a massive shift in the global online presence, and financial institutions are no different. For example, let’s take banks; 57 percent of consumers prefer online banking over visiting a brick-and-mortar branch. 

    Some financial institutions believe that a simple credit check and a photo of a license is sufficient enough to warrant the issuance of a credit card or to open an account. It is far from the truth – as technology evolves, so do fraudsters and their tactics to bypass your security protocol. 

    Therefore, you should consider deploying innovative solutions, such as mobile face recognition, to strengthen your credit checks and virtual ID scans.

  • Retailers are consistently vulnerable to fraud and theft which can be crippling for establishments of all sizes. Chargeback fraud contributes greatly to the losses businesses incur over the course of their lifetime and are rapidly becoming more problematic. In fact, according to a study by LexisNexis, overall retail frauds have tripled since 2017. 

    The rise in online shopping trends has also ushered in new sets of malicious threats for retailers. That said, the key to staying ahead of chargeback lies in an extensive understanding of why they occur and how you can prevent them. Here’s what you need to know:

  • As somebody who works for a financial institution, AML compliance needs to be one of your top priorities. One of the main AML compliance regulations states that every financial service company must perform identity verification. This is why it’s especially important to make sure that your customers really are who they say they are, also known as customer due diligence (CDD).

    That said, it’s crucial that you closely follow a CDD checklist to avoid fines, criminal negligence, or even a company shut down. Making sure your business is fully compliant with AML regulations is key to protecting both your company and your customers. 

    This checklist will help to ensure your customer due diligence is completely taken care of:

  • While the evolution of technology has been beneficial to financial institutions and their customers alike, it has also made it easier for the fraudsters to get around unsophisticated security measures.

    A fraud committed online is usually known as virtual fraud. The only way to reduce the virtual fraud risks is by understanding what it is and what preventive measures you can take.

  • Chargeback fees can cause serious financial damage and also threaten your business’s reputation. Chargebacks do not only refer to returned merchandise or lost sales; the true cost of chargebacks lie in fees that are tied to them.

    Typical chargeback fees range from $20 to $100. Add in the customer acquisition and operation costs (stocking, storing, packing, and shipping) and your business ends up losing almost three times the transaction amount.

    Therefore, it is crucial for you, as a merchant, to take preventive measures to reduce the instances of chargebacks fees. Here’s how you can stay ahead:

  • The Bank Secrecy Act (BSA), requires all financial institutions to collaborate with the US government to combat monetary crimes as well as the prevention of money laundering. Under BSA requirements, financial organizations must work relentlessly to detect and identify potential suspicious financial activities. Since its initial inception, BSA regulations have undergone several amendments, including the Patriot Act, which helps expand BSA’s scope to include monitoring and preventing terrorist financing activities. 

    Failing to be compliant with all changes to BSA regulations can result in hefty fines or even jail time. That’s why it is so critical to stay on top of changes in the industry, but many financial professionals don’t know how to do this, as they are busy with their day jobs and duties. 

    To make sure you are getting the most accurate information in a timely manner, here are a few simple and painless ways to keep up with BSA requirements and changes when they happen:

  • KYC (or Know Your Customer) is a practice in all regulated banks for customers’ identity verification. It is a necessary measure to monitor and assess customer risk. In fact, KYC authentication is a legal requirement for financial institutions as an anti-money laundering (AML) compliance measure.

    KYC authentication is a process carried out by organizations to verify the identity of their business partners and clients to stay compliant with current laws and regulations. Failure to stay on top of the KYC process can lead to significant fines for your company. Therefore, you must remain vigilant and up-to-date on your KYC process in order to stay AML compliant.

    Although there are many common mistakes every company makes in regards to AML compliance, you should avoid three critical KYC authentication mistakes at all costs.

  • A lot of businesses have questions about credit card chargeback merchant rights. To answer that, you must first understand what a chargeback is and how it works.

    In simple terms, a chargeback is a reversal of any credit card payment initiated by the bank that issued the card. This is often used when a buyer feels that the product description is deceitful or they suspect identity fraud, they will contact their bank directly to enforce a chargeback.

    A chargeback is a safety net designed for cardholder’s security. Therefore, you should understand credit card chargeback merchant rights to ensure you protect your business from chargeback frauds whenever possible.

  • In the fight against money laundering, the Financial Crime Enforcement Network established the Bank Secrecy Act (BSA) of 1970 and several laws thereafter. Anti-Money Laundering (AML) training programs have since been created to ensure that companies understand and conform to these AML compliance laws and regulations. 

    These programs were originally built on four core pillars: the development of internal policies, procedures and controls, the designation of an AML program officer, relevant training of employees and independent training. A fifth pillar, due diligence, was added in 2018. 

    AML training programs are now one of the necessary steps toward securing AML compliance. Here are a few things to keep in mind during the training process:

  • When it comes to AML compliance, the basic checklist will tell you almost everything you need to know. However, there are a couple of other factors that might have slipped your radar. If you look specifically at KYC, for instance, you’ll find that high risk customers require some additional resources before you can proceed with complete compliance. 

    So while basic Customer Due Diligence is necessary for any bank or other financial institution, the concept of Enhanced Due Diligence (EDD) might not be as familiar. If that’s the case, here’s what you need to know:

  • In order to abide by BSA/AML compliance regulations, a reliable Customer Identification Program (CIP) is a must. With the development of technology, CIP programs have become increasingly tighter to protect against things like identity theft and organized crime...

  • The world has been shifting towards digital reliance for the last decade or so. In the wake of coronavirus pandemic and social distancing parameters, this trend has escalated. This is especially true for online shopping, purchasing, and online credit card/loan applications.

    According to the UN report, the COVID-19 pandemic may lead to an increase in the number of cyber-attacks and frauds. According to the UN Security Council, there has been a 600% increase in malicious email attacks alone in recent months.

  • Anti-Money Laundering (AML) is defined as a set of laws, regulations, and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income. AML laws, such as the Bank Secrecy Act, were first put into place by the U.S. government in 1970 and ever since, AML compliance has been considered a federal requirement. 

    As such, banks or other financial institutions that fail to be AML compliant can incur jail time, hefty fines, loss of income, wasted resources, etc. Integrating a successful AML software is one crucial step towards protecting your business against fraud and AML regulation backlash. Here are a few types of AML software your financial institution might want to consider incorporating:

  • Fraudulent activity is an issue that affects almost every business worldwide. From major retailers facing in-store and online credit card fraud to banks and financial institutions who deal with fraud on a daily basis, it’s a very common issue that many companies have tried to combat.