New Account Fraud

[Kristen Butler]

Hello –

We have been experiencing a large amount of new account fraud with new customers that are passing ChexSystems. They are enrolling in Banno a few days after the account is opened and then willingly giving their credentials to a fraudster. That fraudster is then setting up account through External Transfers, completing the micro deposits and then pulling money in. After the money hits the account, they are then turning around and sending the money out to another External Transfer account they set up. All of this leaves us without dispute rights because we are the ODFI and the RDFI for one transaction.

Does anyone have any tips, tricks or ideas to put in place to slow this down or stop it?

[Kassi Croft]

Hello,

I’m with Bread Financial. We have custom code to place a 10 buiness hold on new account funding that goes into effect at the end of day. Then, we also have a 5 business day hold on any banno deposits.

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