The document discusses best practices for reducing check losses, including: 1) Screening checks in real-time for fraud could reduce losses by 60% according to industry reports. 2) Applying holds consistently under Regulation CC guidelines protects funds longer from fraudulent checks. 3) Integrating duplicate detection into check processing and cooperatively addressing fraud across institutions can further reduce losses.

1. 1
Best Practices in Reducing
Check Losses
© Bluepoint Solutions

2. Change in Check and Debit Card Usage
*number of payments (billions)
2
Source: 2010 Federal Reserve Payments Study © Bluepoint Solutions

3. Annual Check Fraud Losses
*estimated industry losses (millions)
3
Source: ABA Deposit Account Fraud Report © Bluepoint Solutions

4. Industry Estimates for Check and Debit Fraud Losses
*actual losses (millions)
4
Source: ABA 2011 Deposit Account Fraud Report © Bluepoint Solutions

5. Change in Check and Debit Card Usage
*number of payments (billions)
5
Source: 2010 Federal Reserve Payments Study © Bluepoint Solutions

6. Check Fraud Losses by Type of Fraud
*based on actual $ amount of losses
6
Source: ABA 2011 Deposit Account Fraud Report © Bluepoint Solutions

7. Check Fraud Losses by Type of Fraud
*based on actual $ amount of losses
7
60% of
losses could
be reduced by
real-time
screening.
Source: ABA 2011 Deposit Account Fraud Report © Bluepoint Solutions

8. RDI Timelines for BOFD
*Day 1 is the first day after deposit is made
8
Source: ABA 2009 Deposit Account Fraud Report © Bluepoint Solutions

9. RDI Timelines for BOFD
*Day 1 is the first day after deposit is made
9
43% of deposited
checks at Mid-Sized
FIs are protected by a
statutory Reg CC hold.
41% of checks at
Community FIs are
protected.
Source: ABA 2009 Deposit Account Fraud Report © Bluepoint Solutions

10. RDI Timelines for BOFD
*Day 1 is the first day after deposit is made
10
57% of deposited
checks at Mid-Sized
FIs would be protected
by an extended hold.
59% of checks would
be covered at
Community FIs.
Source: ABA 2009 Deposit Account Fraud Report © Bluepoint Solutions

11. Reg CC Hold Summary
11
Statutory Hold Extended Reg CC Hold
Large Deposits, New Accounts, Exceptions
Day 1 Teller applies Statutory hold (NSF & Return History, New Account, IRDs, Doubt of Day 1
Collectability)
Day 2 Day 2
$200 next-day availability
Day 3 Day 3
Day 4 BOFD protected by extended hold Day 4
Day 5 Day 5
Balance of funds available.
Day 6 Day 6
BOFD at risk
Day 7 Exception, Large Deposit holds released Day 7
Day 8 Day 8
Day 9 New Account hold released Day 9
© Bluepoint Solutions

12. Best Practices in Check Loss Reduction
‣ Screen for fraud in real-time
‣ Apply holds consistently
‣ Integrate duplicate detection into check
processing
‣ Approach fraud cooperatively
‣ Integrate fraud screening with your existing
solutions
© Bluepoint Solutions

13. 13
Learn more:
http://www.bluepointsolutions.com/white-papers/check-losses/
© Bluepoint Solutions