Fraud protection solutions are necessary for large businesses as well as for individuals. Solutions may include web-based services, software programs, or other technologies to prevent fraud from occurring. These solutions are most important for financial institutions because they are required to actively prevent fraud by law.
After the terrorist attacks on September 11, 2001, the USA PATRIOT Act was established to prevent future cases of fraud and terrorism. Two articles of this act single out requirements for financial institutions. According to sections 314 A and 326, banks must verify the identities of prospective customers and check customer databases regularly with government watch lists. These methods help financial institutions to detect potential threats to the financial system before they are allowed to use the system.
Options for Fraud Protection Solutions
Without fraud protection solutions, it would be very difficult for financial institutions to comply with the USA PATRIOT Act. Solutions can be found primarily online and most programs will use the Internet to provide information for financial institutions. For instance, when financial institutions use an OFAC watch program, they are allowed access to online OFAC lists and government watch lists for information about possible terrorists, criminals, or money launderers.
ID verification is one of the best fraud protection solutions available to financial institutions. This program is cost effective, web-based, and easy to use. ID verification programs can crosscheck over 23 billion records to verify the identities of different individuals. It also screens customer databases against government watch lists and organizes data into specific areas for easy viewing by financial institutions.