Banking on Fraudology Combatting Check Fraud: Verifying Payee with SentiLink’s Treasury Check Verification Service (TCVS)
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Mar 19, 2025 David Maimon, Head of Fraud Insights at Centrelink and a seasoned fraud expert, dives into the alarming world of treasury check fraud. He reveals how criminals exploit verification loopholes and outlines rising threats like first-party fraud and synthetic identities. The conversation highlights the innovative Treasury Check Verification Service, which allows financial institutions to confirm payee names, revolutionizing fraud prevention. With real-world examples, David showcases how this tool is already protecting against significant losses in the industry.
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Treasury Checks: A Prime Target
- Treasury checks have become prime fraud targets due to easy alteration and outdated verification processes.
- Fraudsters exploit the lack of payee name verification, making it easier to cash altered checks undetected.
Check Clearing Times
- Banks are increasing the time it takes to clear private and business checks, making treasury checks more appealing to criminals.
- Government regulations require treasury check funds to be available quickly, providing fraudsters faster access to stolen money.
Notable Fraud Trends
- Increased first-party fraud involves individuals acting as money mules, depositing fraudulent treasury checks into their accounts.
- Criminals also open drop accounts using synthetic or stolen identities to deposit intercepted checks.