Types Of Fraud

New Mercator Report: Multi-Channel Deposit Account Fraud And Vendor Solutions

Boston, MA (PRWEB) June 20, 2011

Debit cards represent only one access device through which fraudsters might attack a depository institution’s account assets. Though cards supporting “signature” debit (and, to a smaller degree, PIN debit) have enabled fraudsters to access deposit accounts through fraudulent point-of-sale or card-not-present purchases, the variety of schemes that target demand deposit accounts (DDAs) often utilize multiple channels and access devices to target the cash itself in fraudulent withdrawals and transfers.

Check fraud, ACH fraud, wire transfer fraud, ATM fraud, and online banking and mobile banking fraud (in addition to debit card fraud) collectively comprise what we’ve come to know as deposit account fraud. Since fraud schemes that target the DDA through multiple channels are proliferating, the business case for implementing a multi-channel fraud solution has never been clearer.

Mercator’s new report, Multi-Channel Deposit Account Fraud and Vendor Solutions, discusses and tries to answer these essential questions: How are these schemes being executed today by fraudsters hoping to exploit financial institutions’ vulnerabilities? How are the solutions that vendors have brought to market evolving to counter these threats?

This report reviews extant research and data to illuminate today’s DDA fraud landscape, provides case examples of recent fraud schemes that target deposit accounts, and profiles selected vendor solutions that help banks and payment processors manage fraud risk associated with at least one channel or device that accesses DDAs.

“A variety of point solutions exist in the market to address the risks associated with DDA fraud of different types in a specialized fashion, often looking at only one aspect of the usage of the instrument or channel without providing the user with a comprehensive understanding of the account-level behavior that underlies the broader customer relationship,” David Fish, Senior Analyst at Mercator Advisory Group and author of the report comments. “Some of these solutions have evolved more recently to do exactly that, or to at least aspire to multi-channel and even “enterprise-wide” fraud management. The path to a comprehensive DDA fraud solution has been paved by specialists in various channels, however, with best-of-breed solutions in debit card fraud, for instance, requiring significant modification when applied to a different type of payment instrument or access channel.

Types Of Mortgage Fraud Schemes | Homes for Sale San Antonio, TX

Motives for mortgage fraud could either be for for profit or for properties for sale . Basically there are two types of mortgage fraud – fraud for property (done by buyers through lying about his or her income, financial obligations, employment status, or position at a company in order to secure a loan) and fraud for profit (defraud the lending institution of money and escape with the profits), but fraudsters also adopt as home buyers, sellers and investors are becoming aware of their fraudulent strategies. Consequently, there are so many types of mortgage fraud, tactics, or schemes that every person must be aware of. Here are some of the already scratched types of mortgage fraud schemes but are still victimizing people:

1. Churning – This is described as an extreme or uncalled-for selling or lending activity just to benefit from generating fees and commissions or comparable sales. Normally, appraisers use bogus sales as comparables in appraisal for sales and refinance transactions.

2. Chunking – This is described as multiple loan applications submitted to many lenders not disclosing the investor’s how to get rich by investment, but actually takes a cut of the profit and never leases the property.