Just Don't
Give Them Checks!
Chex-Systems,
Inc,. has released a new service to help financial services companies
monitor new account applicant verification procedures: The service is
called Audit Report. "Audit Report helps tackle the $15 billion in
annual losses associated with checking accounts by pinpointing which
accounts your new accounts personnel never should have opened in the
first place," said Bob Molloy, senior group product manager,
Chex-Systems.
Chex-Systems
conducted a pilot study with a major bank to identify when new
account screening procedures were not followed. The study estimated
that the bank was exposed to approximately $300,000 in losses in one
month due to officers either overriding negative information or not
inquiring on risky accounts.
Audit Report
provides summary reports that pinpoint accounts that are opened
despite negative information from Chex-Systems and accounts that are
opened without any kind of inquiry. "Financial services companies
lose about $220 to $350 on each abused checking account, and about
$13,000 on each account closed due to fraudulent activity,"said
Molloy.
Audit Report, part
of the Chex-Systems suite is driven by Debit BureauSM, with analytic
capability fueled by debit information. Debit Bureau provides access
to information on check order histories retail NSF check-writing
histories, account openings and closings, and lost or stolen
checks.
Chex-Systems,
Inc., is a part of Deluxe Payment Protection Systems.
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