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OASIS: Fraud Detection and Prevention Solution
OASIS offers a probabilistic approach for analyzing images and transactional data to identify and flag suspicious items and potential risk exposure. It offers a centralized interface for adjudicating suspect items. Watch this short video to learn more.
Preventing Fraud Across Types and Channels
OASIS™ (Optimized Assessment of Suspicious Items) uses advanced math and machine learning to analyze images and data to find potentially suspicious items and assess their risk. It offers a central platform for evaluating these items and managing cases that need further investigation.
Mitigating Check Fraud
Transaction Analysis
Processes debits and credits in deposits and withdrawals. It identifies suspicious items, such as out-of-range and duplicate check numbers. It applies tests at the account and entity level, assigning scores to decide whether to flag the items.
Check Stock Validation
Analyzes check images against prior checks, validating that elements of the check stock are the same. It finds counterfeit inclearing and over-the-counter checks faster and more accurately than visual review.
Signature Verification
Uses machine learning and decision trees to analyze check signatures. It compares digitized signatures to prior check images. It can handle multiple signatories on the same account and monitor items requiring dual signatures. It produces confidence scoring when comparing new check signatures with previously saved images.
Check Alterations
Alteration fraud relies on ‘check washing’ or ‘check scraping’ to remove and replace ink on an otherwise good check. Fraudsters rewrite the checks for a new recipient or a larger sum before cashing them. Unlike counterfeit checks that are 100 percent fake, alteration fraud begins with valid checks making it harder to detect.
Combating this growing problem requires image analysis depth using newer artificial intelligence (AI) tools and techniques. In addition to the traditional methods, the solution uses “deep learning” models to find subtle differences in handwriting style or fonts.
The software analyzes the check image to ensure the handwriting matches across check fields. Handwriting changes between the amount or payee fields and other fields may indicate that fields have been altered. In addition, if the handwriting style differs from previous images, the system marks the check as suspicious.
Transit Check Fraud Prevention
Because the checks have traveled to a different bank from the one that holds its funds, it can be hard for the receiving bank to know whether transit checks are bad. The solution uses analytics to assess the transit item’s chances of being returned by scoring characteristics of the check, the originating and depository accounts, the balanced transaction, the conductor, and the transaction context. A collectability model uses these scores to recommend holds.
Mitigating ACH Fraud
OASIS employs several methods on each outgoing ACH transfer to protect the customer and the bank.
- Verify whether the account should be allowed to initiate an ACH transaction, make an electronic transfer, or have debits or credits posted on it through ACH at all.
- Apply outlier models to flag payments that are out of pattern for this account or customer, and check for known suspicious patterns like an initial penny transfer.
- Score outgoing payments based on the receiving account’s reputation:
- Does this account have a history of doing business with the counter-party account?
- How many other accounts in the bank have had transfers to or from that counter-party account?
- How often were those payments disputed, not paid, or reported as fraud?
Protecting Deposit Transactions with Auto Holds
For a deposit, the solution analyzes each item in the deposit. It combines this with scorecards to calculate risk. It analyzes more than 60 parameters covering the conductor, beneficiary, issuing account, and items to produce a single fraud score. It gives the teller a message about what to do, including a hold recommendation. This gives the bank the option to accept the deposit, covering the fraud and other collectability risks by holding the funds.
The solution offers real-time Regulation CC hold features for tellers. It suggests hold amounts based on set rules, determining which items a hold should be placed on and how much the hold should be. The solution notifies the teller of the available dates and reasons for each hold.
After processing the hold, the solution generates a complete Reg CC Hold Notification form for the customer and the branch, automating Reg CC compliance. Holds for exceptions, pledges, or hard holds may be placed as necessary for non-Reg CC items.
Anti-Money Laundering
The solution’s AML helps compliance officers learn more about customers by providing automated risk analysis when accounts are opened and during the customer relationship. It offers tools for due diligence to create risk profiles based on customer details, watch-list searches, and key risk indicators. This helps reduce risk and find high-risk customers through ongoing analysis, while also keeping client information updated for continuing due diligence.
The solution analyzes customer data by looking at factors such as products and services they use, type of business, their income, and address demographics. It cross-references government lists such as OFAC, as well as blacklists and whitelists from financial institutions and law enforcement. Customers seen as high risk are placed on a monitoring list. Criteria include multiple Suspicious Activity Reports (SARs), high-crime locations, cash businesses, and multiple residences. The solution combines these analysis points to give a risk-based rating for the customer.
Adjudication
OASIS increases accuracy by combining automated decisioning with predictive analytics, allowing:
- More “true suspect” items to be analyzed.
- Fewer false positives returned.
- Decreased analyst alert queue load.
The platform’s probabilistic process assigns a score to each transaction. These scores can then be used to prioritize further investigation. The platform’s fraud detection interface and case management help streamline the process, reducing labor costs by up to 70%.
OASIS case management provides a collaborative process for managing fraud investigations for items needing more research. Opening a case provides fraud analysts with a method for collecting and storing information needed to investigate suspicious activities.
When an actual fraud has been established, the process and details of settling the fraud can also be recorded in a case. This allows for financial reporting on amounts at risk, loss, and recovery from OASIS. OASIS logs all analyst actions, making the process auditable.
Why Our Customers Choose OASIS
ARGO’s increased accuracy in fraud detection directly impacts the cost of running fraud prevention departments, including deposits, retail, and IT, and certainly impacts the bottom line.
ARGO heavily invests.
Our customers reduce fraud loss and labor costs.
