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Discussion Boards > Remote Deposit Capture Discussions > RDC Indemnity View modes: 
User avatar
kimberlyhdescher - 8/21/2020 3:02:13 PM
RDC Indemnity
Anyone familiar with the details of using RDC indemnity claim for duplicate check returns?  A customer is inquiring about our institution taking on the risk for these items.

User avatar
tgavin - 8/24/2020 6:54:46 PM
RE:RDC Indemnity
We have been on the receiving end of many claims.  We are the banking partner for many non-bank fintech partners who offer mobile deposit to their customers.  Since this is a totally mobile app population, there tends to be a lot of fraud with duplicate check presentments.   We see a lot of deposits through our channel on day 1 and then the check being deposited in person or via mobile to another bank on day 2.  Even if the customer does a mobile deposit through our channel and then does a second mobile deposit through another bank on the same day, there's no way to really tell which one hit the receiving bank first and whether we should get his with the claim.  In our situation, unless it is very clear that the claim should not have come to us, we pass the loss along to the program partner.
(the fraudsters are tricky and they will have a back of the check in their deposit to us with all the proper endorsement information required under Reg CC so from what we see, it looks good.  I'm sure this is a "false" back so they can deposit the check again through another bank!)

User avatar
xkasprzak - 8/25/2020 1:18:13 PM
RE:RDC Indemnity
tgavin, have you considered activating Integrated Fraud Check (EWS) to literally stop the industry duplicates during the deposit experience.  The Ensenta platform will check for duplicates across all channels of RDC for their 1600 customers for 12 months, in addition to making a real-time call to Early Warning's Real-time Deposit Chek service to stop Intra-day duplicates and Already cleared at another bank duplicates across the industry.

This would out-smart the fraudsters trying to use the back with proper endorsements.

User avatar
xkasprzak - 8/28/2020 9:17:59 AM
RE:RDC Indemnity
tgavin, we are tracking an increase in attempted fraud for the FinTech channels.  The attempted duplicates, bad checks, tends to run .33% for traditional banks and 2.67% fo FinTech... definitely important to guard tighter when running FInTech portfolios.  

Recent Forum Posts

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