Combat wire transfer fraud

The spread of internet malware and key logging software has led to an increase in sophisticated wire fraud schemes targeting customers of community financial institutions.

In addition, recent high profile court rulings have created legal precedence whereby community banks and credit unions are increasingly expected to have the ability to detect and prevent wire fraud.

Banker’s Toolbox launched WireFraud Manager, which quarantines suspicious wire transactions in real-time, based on a set of comprehensive filters involving both behavioral and transactional analysis.

The solution will automatically look at the profile of the wire sender to make sure that each new transaction is aligned with what the customer is expected to do. This will allow the financial institution to review a suspicious wire transfer request before it is processed and prevent a potential fraud loss to the customer’s account.

“Wire fraud is a clear and present danger in modern banking. It’s not just the monetary loss when a fraudster attacks your institution. Allowing a fraudster to attack creates reputational loss in the community and diminishes shareholder value in the institution,” said Daniel Cho, founder and CEO of Banker’s Toolbox. “WireFraud Manager is designed to protect community financial institutions from this risk. By screening all outgoing wire transfers using behavioral profiles, we provide community financial institutions with a sophisticated yet intuitive tool to combat wire fraud.”

“Wire transfers are a risky activity. We want to make sure we’re mitigating that risk in the most appropriate fashion,” says Charles Douglass, Chief Information Officer at Paragon Commercial Bank. “As community bankers, we have a fiduciary responsibility to our customer to do everything we can to protect their money, while still affording them the convenience of electronic banking. Now with WireFraud Manager, we have the ability to do that.”




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