Page 7 - September 26, Bulletin

aRTiCLeS

Criminals most frequently alter and then negotiate stolen checks, FHFA Releases Online Dashboard
according to FinCEN’s analysis. The second most frequent use to Assess Disaster Risk for
of stolen checks was creating counterfeit checks - where a stolen
check is used as a template to produce counterfeits. The third Housing Markets
most common outcome was perpetrators fraudulently signing and
depositing checks. The updated typologies criminals use range from The Federal Housing Finance Agency has released an online risk
unsophisticated to highly organized and complex, often involving analysis tool that provides geographic estimates for physical risks
advanced counterfeit check technology and chemicals that can from various types of natural disasters as well as nationwide data on
remove ink from stolen checks, it added. housing and the mortgage market. The Mortgage Loan and Natural
Disaster Dashboard is intended to give property owners, community
Many perpetrators utilized methods that avoid human contact, leaders, financial institutions policymakers and other stakeholders
including check deposits via remote deposit capture or at ATMs and better insight into which areas of the country are most likely to incur
opening accounts online rather than in person, FinCEN said. Check greater damages from natural hazards, the agency said in a statement.
fraud was reported in every state as well as Washington, D.C., and
Puerto Rico. Alabama had the highest reporting rate relative to its “Climate risks, especially natural disasters, pose a serious threat to
population, followed by Georgia, D.C., New York and New Jersey. housing and other critical infrastructure, particularly in vulnerable
communities,” FHFA Director Sandra Thompson said. “Providing
To combat check fraud, including by mail, and other fraud and geographic information on disasters as well as concentrated exposures
scams, the American Bankers Association offers the ABA Fraud of loans acquired by our regulated entities can help policymakers and
Contact Directory, an online resource that helps banks connect with the industry develop solutions to better safeguard those communities
other institutions to resolve warranty breach claims for checks as from the impact of future catastrophes.”
well as claims for unauthorized and/or fraudulent transfers for wires,
ACH, RTP or FedNow. The dashboard uses data from three public sources, including the
FHFA’s Duty to Serve High-Needs Rural Areas data, according to
Read more: https://www.fincen.gov/sites/default/files/shared/FTA- the agency. Dashboard users can view national mortgage data at the
Check-Fraud-FINAL508.pdf Census-tract level overlaid with expected annual damages for 18
different natural disasters.
Survey Finds Most Smaller Banks Read more: https://www.fhfa.gov/data/dashboard/mortgage-loan-
Increasing Technology Budgets and-natural-disaster

A majority of banks below $100 billion in revenue are spending Transportation Department
more on technology this year than in the past, but most also say their
technology projects are not being completed on schedule, according Launches Inquiry into Airline
to a new survey of bank executives and board directors by Bank Rewards Programs
Director and Jack Henry.
The U.S. Department of Transportation has launched an inquiry
Three out of four survey respondents said their bank’s technology
budgets rose in fiscal year 2024, with a median increase of 4%. into the four largest U.S. airlines’ rewards programs, with the goal
Respondents said their institutions set aside a median of 10% of of “protecting rewards customers from potential unfair, deceptive
their budgets for technology. At the same time, 60% of respondents or anticompetitive practices,” according to an agency statement.
said one or more technology projects planned in the past 18 months American Airlines, Delta Air Lines, Southwest Airlines and United
were not completed on schedule. Roughly one-third of respondents Airlines were ordered to provide records and submit reports with
said they had problems integrating new technologies into their detailed information about their rewards programs, practices and
existing systems, while more than one in four said their projects went policies.
over budget. DOT said that given the proliferation of rewards programs in air
travel, the review was launched to examine the fairness, transparency,
Respondents were also asked about fraud concerns. A majority predictability and competitiveness of such programs. “These
(89%) said they were more concerned about fraud in their bank’s programs bring real value to consumers, with families often counting
digital channels compared to last year. Check fraud, phishing scams on airline rewards to fund a vacation or to pay for a trip to visit
or social engineering attacks, and digital payments fraud were the loved ones,” Transportation Secretary Pete Buttigieg said. “But
three types of fraud that worried respondents most.
unlike a traditional savings account, these rewards are controlled by a
Read more: https://www.bankdirector.com/wp-content/ company that can unilaterally change their value.”
uploads/2024/09/2024TechReport-OpenVersion-final.pdf

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