Check cashing can be a risky proposition without proper tools in place to minimize fraud. Here are a couple layers of protection that really help and can easily be implemented with the right check cashing system….
- Access to data from other check cashing retailers
- Automatic flags for potential fraud with velocity settings
- Positive ID of customers – using FBI-certified biometric technology
1. Data from Other Retailers
Real feedback and data from other retailer cashing checks is invaluable. Participating in a network that shares negative data across all stores is a great asset when dealing with fraud rings.
AllTrust’s network includes 2000 retail check cashing locations (including grocery, liquor, and convenience stores, mom & pop shops, as well as traditional check cashing locations). In addition we have more than 6 million consumers enrolled in our network, and data on more than 3 million companies issuing payroll checks. This data is accessed during the check cashing transaction to reduce your exposure to fraud.
2. Velocity Settings
Velocity settings alert you to differences in your normal check cashing activity; from either an individual customer or a check issuer. A velocity warning is not always an indication of fraud; but it is a warning that your risk has increased; as your average check cashing transaction amounts are (or will be) exceeded.
Look for check cashing software that can enforce your store policies (e.g. velocity settings) automatically. For more on velocity and how to use it effectively, read our post “Velocity: What is it and how it can help protect your business from fraud”.
3. Proof of Customer Identity
How do you know a person you’ve never seen before, holding a check to cash is who they say they are? There’s a government issued ID (driver’s license), and their word. But that’s not always enough. IDs are still relatively easy to fake. So, how else can you know your customer?
Biometrics can help; when you use a quality biometric device (e.g. FBI-certified) to compare your customer against a network.
- They discourage potential fraudsters. Once an individual is in the AllTrust system, and if they are marked BAD; any time they try to cash a check within the AllTrust network, they’ll be declined.
- Good customers like the convenience of biometrics. They simply place their finger on the scanner and their record appears on screen (no more fumbling for IDs). Plus once they have a history in the network; even if you don’t know them individually; you can quickly view their check cashing activity at your store, or elsewhere.
For more about check cashing tools, contact AllTrust Networks at 1-866-280-1679 or visit our product site at www.alltrustnetworks.com.
