Section 114b Archives

Fraudulent Phone Number Changes: A Growing Problem

Fraudsters are good at adapting. When banks started calling or texting their customers to verify the legitimacy of out-of-pattern account activity, like big money transfers,

Visualization Becoming More Important in Understanding Organized Fraud

While graph theory applications have been in the market for many years, they are gaining popularity because fraud rings are larger, more complex, and more

Could Email Be the Fraudster’s Achilles Heel?

Fraudsters can open dozens of fraudulent accounts per day while sitting on a beach in Bermuda.

Could New USPS Service Standards Affect Account Takeover Rates?

Only time will tell how or whether the new USPS standards will impact account takeover rates.

Founder Elliott Asks: Is it Time to Relegate Address Verification Letters to the Trash Heaps of History?

In a recent article for Great Lakes Banker, Adam Elliott, Founder and President of Kevari writes, “As you’re assessing opportunities to embrace modern technology and

Account takeover schemes are rarely limited to physical address alone

When the Federal Trade Commission made a public request for comment regarding the 2007 Red Flags Rule, the American Bankers Association and Attorneys General from

Why You Can’t Afford an Old-Fashioned Approach to Address Changes

How do you distinguish legitimate address changes from fraudulent ones without causing undue customer friction? What you DON’T do: Rely on change notification letters. The practice of sending change notification letters to comply with Section 114b of the FACT Act Red Flags Rule does almost nothing to proactively prevent fraud. What you SHOULD do: Identify and pursue only the most suspicious address changes. While you’re at it, monitor all email and phone changes, too.

Still Mailing Address-Change Letters? You Can’t Be Serious!

While much of regulatory compliance is now achieved with the help of efficient automated systems, financial institutions still have processes that have not benefited from modern technology. These relics from the past are a drag on the bottom line; they are paper-intensive, inefficient, and expensive.

One such relic is the process by which financial institutions are verifying customer/member address changes to comply with The FACT Act Section 114B. Instead of using cost-effective analytics software solutions as the law allows, institutions are printing and mailing letters at a cost of about $1 per address change.

Podcast: Address-Change Verification Does Not Have to Grow on Trees or Cost So Much

A digital approach to verifying address, phone number, and email changes is more efficient, cost effective, and better at reducing fraud losses in today’s digital banking environment. There’s never been a more perfect time for financial institutions to retire those antiquated address-change letters.

Manual Reports: No Match for Today’s Account Takeover Schemes

Fraudsters often have better technology for committing fraud than banks have for stopping it. This is particularly true when it comes to account takeover (ATO).

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