New Account Screening

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New account screening is a critical part of the identity and fraud prevention process for financial services providers. Criminals are increasingly committing bank account fraud by creating synthetic identities, a technique that is more difficult to detect than traditional credit card fraud. The goal is to obtain the holder’s money and then disappear with it. Financial institutions must be vigilant in identifying suspicious new accounts, particularly during the first 30 days when the likelihood of fraud is highest. visit their website

Scam artists often make a large number of false deposits with stolen, forged or counterfeit checks, and also checks drawn on fraudulent accounts at other banks. They then withdraw these checks as soon as they are available. In order to detect this activity, a bank needs a system that monitors new accounts in real-time, and a system that can detect if an applicant’s address on the photo ID does not match the home and/or business addresses provided by the applicant.

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In addition to checking a new account applicant’s credit report, banks may check reports from a consumer reporting agency called ChexSystems or Early Warning Services. These agencies keep records of closed bank and credit union deposit accounts that have been problematic in some way, such as bouncing a check or excessive overdrafts. Having a record in these agencies could result in an application denial.