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RDC Risk Management: 2017 Update

Thursday, September 07, 2017 (RemoteDepositCapture.com / Patti Murphy)

As remote deposit capture evolves and adoption grows, risk management policies and procedures must also evolve.
It’s no secret that remote deposit capture is fueling fundamental and transformative changes in how banking is conducted in the United States. At the same time, there is a growing awareness of the need for risk management policies and procedures to continually evolve to address these changes.
 
“Knowing your customers is where it all begins and ends,” said John Leekley, Founder and CEO of RemoteDepositCapture.com. Not just knowing who they are when they sign up for a service like RDC, but how they make deposits and otherwise interact with your financial institution on an on-going basis, he said. Fortunately, there are risk management technologies, processes and services that can help with this, Leekley added. Examples include ongoing monitoring of customers and the ability to take actions when customer activity warrants, and geo-location and device identification tools for monitoring mobile deposits.
 
But during an August 29 webinar, RDC Risk Management 2017: An Updated Approach, Leekley warned that many FIs have been slow to implement enhanced risk management protocols, even as they onboard more business and consumer RDC customers. “There is as a gaping hole in the industry’s approach to risk management, particularly with respect to mobile RDC,” Leekley said.
 
Research conducted by RemoteDepositCapture.com, for example, suggests fewer than 1 in 10 FIs use geo-location identification tools and only about 1 in 4 use device identification tools, both of which have proven useful in spotting anomalies that warrant closer inspection of RDC items, Leekley noted.
 
In RDC Risk Management 2017, Leekley presents an in-depth look at trends in RDC adoption, as well as trends in risks like duplicate deposits and account takeover scams. And he describes steps FIs can take to minimize these and other RDC risks. The webinar is available now, on demand, in the RemoteDepositCapture.com webinar library. Paid members of RemoteDepositCapture.com can access the webinar for free; the cost to non-members is $249. Click here to access.
 
“Duplicate deposits, whether fraudulent or accidental, are inevitable in an RDC environment,” Leekley said. “Losses are not.” The right combination of KYC procedures, best practices and risk management tools will help keep duplicates, whether accidental or fraudulent, to a minimum.  “Ongoing risk monitoring and actionability is critical to the success of any RDC offering,” Leekley counseled.
 

 
 


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