In a world of automation – and a world of cost cutting – I continue to be amazed at the willingess of financial institutions to continue with antiquated / costly processes.

I spoke with a bank yesterday that indicated that they are currently screening all address changes. To do this – they immediately mail a $0.75 piece of mail to the former address. They then put an immediate hold on allowing the customer to request any checks or credit cards for 10 business days.

Next – when there are address changes out of state, these transactions are all faxed over to a separate working group. Their job is to manually investigate these through a variety of tools to see if it is suspect. Sometimes they are able to review the suspect reports – but many times they slip through the cracks.

This workflow process is complicated and costly….. yet – they are still seeing fraud.

Much like P.O. Box screening, AVS, Mail Drop screening, etc… have all seen their day as a viable fraud solution – so must the U.S. Mail strategy!!

Date Posted: July 10, 2008 Author: Category:   IDI Blog

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