Tax filing season is currently underway—is your financial institution prepared to identify possible fraudulent tax refunds?
Tax returns and other Treasury checks for stimulus, Social Security and military pension payments are, unfortunately, at risk for fraudulent deposits from bad actors looking to take advantage of the next-day availability of funds. Duplicate deposits are often a significant driver of check fraud activity and can be related to fraudulent mobile deposits, as well as altered, forged or counterfeit checks. To help combat check fraud associated with Treasury payments, the FedDetectSM Duplicate Treasury Check Notifier Service was launched in late 2021.
Early notification of potentially fraudulent activity helps risk officers identify bad actors and take appropriate action to limit future loss. For banks of first deposit (BOFDs) that are FedForward® customers, this service offers daily reports of potential duplicate Treasury checks processed by the Federal Reserve Banks. The service reviews all Treasury checks that were deposited across multiple payment channels including ATM, mobile and tellers by your institution or by any other BOFD on the current day or previous 60 calendar days. The service is already helping institutions of all sizes add a layer of protection against fraudulent Treasury check activity.
Interested in learning more? Signup is easy and your account executive can help you onboard these reports for your institution. Submit a contact request (Off-site) and your account executive will reach out to you.