Check Fraud Rules
The Unit21 Out of the Box Check Fraud Rules are designed to help your team identify and respond to suspicious check transactions quickly and effectively. Fraudsters often exploit weaknesses in check processing, so we've developed five ready-to-use rules that make it easier to catch and prevent check fraud.
For example, these rules can flag checks with duplicate or missing check numbers, spot transactions where the check number is out of the expected sequence, or identify deposits that match a recent suspicious deposit amount. They can also detect checks presented for clearing much later than expected.
By implementing these rules, your team can more efficiently monitor check transactions, helping to protect your organization from potential fraud and ensure compliance. The following sections will explain each rule and how it works.
1. Check Matches Recent Deposit
Individuals might deposit cash to cover the amount of a bad or fraudulent check that is about to be deposited. Once the check is cleared based on the available cash balance, they might withdraw the funds before the check bounces. This rule will take into account all transactions with a Check Type Classification.
This rule is designed to identify and flag transactions where the payment or transfer amount closely matches or is identical to a recent deposit made into the same account.
Data needed:
The sender and receiver entities should be defined on the transaction. Additionally, the following data are needed:
- From checks coming into your organization
- Receiver account number
- Check amount
- From checks going out of your organization
- Sender account number
- Check amount
2. Duplicate Check Number
Every check within a specific book or batch should have a unique check number. Thus, any duplication of check numbers is irregular and could point to potential fraudulent activities.
This rule is used to detect instances where checks bearing the same check number are presented to the bank, either for payment or deposit.
Data needed:
The receiver entity should be defined on the transaction. Additionally, the following data are needed:
- From checks coming into your organization
- Sender account number
- Sender routing number
- Check number
- Receiver account number
3. Missing Check Number
Checks carry a unique check number to ensure authentication. A missing check number can be indicative of various fraudulent activities.
This rule flags transactions that lack a check number.
Data needed:
The receiver entity should be defined on the transaction. Additionally, the following data are needed:
- From checks coming into your organization
- Check number
- Receiver account number
4. Check # Out of Range
Each issued check within a checkbook typically follows a sequential order. A check that does not follow this order might indicate missing checks or checks being used out of sequence deliberately. This rule will take into account all transactions with a Check Type Classification.
This rule identifies and flags checks where the check number falls outside the expected or sequential range for a particular account.
Data needed:
The receiver entity should be defined on the transaction. Additionally, the following data are needed:
- From checks coming into your organization
- Sender account number
- Sender routing number
- Check number
- Receiver account number
5. Tardy Check
Each issued check within a checkbook follows a sequential order, and any check that is significantly delayed relative to its peers may indicate potential irregularities or misuse. This rule will take into account all transactions with a Check Type Classification.
This rule flags checks where a check is presented for clearing significantly later than other checks from the same sender.
Data needed:
The receiver entity should be defined on the transaction. Additionally, the following data are needed:
- From checks coming into your organization
- Sender account number
- Sender routing number
- Receiver account number
Updated 21 days ago