Armed Forces Bank boosts fraud prevention in 2024
$1.3B institution, like Citibank, uses Nasdaq Verafin solution
Dickinson Financial Corp., the holding company for $1.3 billion Armed Forces Bank, implemented an automated proactive monitoring and anomaly-detection system in the fourth quarter of 2023 that allows the bank to identify fraud before clients are aware it is happening.
The $3.9 billion holding company of Armed Forces Bank and $2.6 billion Academy Bank selected fintech solution Nasdaq Verafin to improve its fraud monitoring efforts, Jeremy Roe, certified fraud examiner, certified anti-money laundering specialist and enterprise fraud officer in the Financial Intelligence Unit at Dickinson, told Bank Automation News.
“Machine learning functionality within the platform allows us to continuously collect and consider data over the life of the client relationship and get a head start on addressing emerging fraud threats that are disproportionately targeting elderly and military clients,” Roe said.
The most common threats are imposter scams and investment scams, he said.
But the use of Verafin “has resulted in a 60% increase in the caseload of our Financial Investigative Unit, resulting in 2,700 case referrals in the last year,” Roe said.
Cloud-based Verafin allows the bank to detect:
- Abnormal spending patterns;
- Unusual withdrawals; and
- Irregular deposits.
More than 3,800 financial institutions, including $1.7 trillion Citibank, use Verafin.
Client education
While the bank invests in anti-fraud technology, it is also prioritizing client education around anti-fraud measures to add another layer of security, Roe said.
On the FI’s website, clients have access to:
- Fraud reporting tools;
- Fraud log publications;
- Email reminders about fraud; and
- Gamified fraud education through online quizzes and via social media.
With education and technology in place, the bank can “detect fraud sooner and identify unusual activities that may have previously gone unnoticed,” Roe said.
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