- A
- B
- C
- D
- E
- F
- G
- I
- L
- M
- N
- O
- P
- R
- S
- T
- U
- V
- X
Account Takeover
Similar to identity theft, this type of fraud happens when an unauthorized individual gain access through online banking applications, capturing the account information to create and write bad checks.
Adverse Action
An adverse action notice is a document sent to a loan applicant stating a bank’s rationale for denying a loan. It may also contain a counteroffer, such as a lesser amount or a request for an approved co-borrower.
Aging Exceptions
The term “aging exceptions” refers to a group of critical exceptions that have not been resolved within a reasonable amount of time.
Altered Checks
Altered check fraud occurs when a fraudster changes the amounts and Payee from a stolen check.
Authorized Signer Form
An authorized signer form is a document that allows an account holder to grant a range of clearance levels to individuals to perform certain functions within a bank account.
Share via:
Suspicious activity monitoring is the procedure of identifying, researching, documenting—and, if necessary, reporting—an account holder’s banking pattern when it indicates possible illegal behavior. This practice is done to both manage a bank or credit union’s risk and comply with regulations.
Examples of suspicious activity include:
- Unusual Large Business Deposits of Cash: Large amounts of cash regularly deposited into an account for a company that is not normally a cash business.
- Personal Accounts with Suspicious Activity: A personal banking account that is established with a small deposit but regularly has large sums of money flowing through it.
- Avoidance of CTR: Multiple deposits in cash, each just below $10,000. This attempts to avoid the need for a currency transaction report, or CTR, to be completed. (The CTR form is designed to deter money laundering and is required when a customer seeks to either deposit or withdraw more than $10,000 in a single transaction.)
How is Suspicious Activity Monitoring Initiated?
The initial burden of suspicious activity monitoring has traditionally fallen on frontline staff at financial institutions. The teller alerts a supervisor or manager, and then an investigation is conducted. In some instances multiple departments may be involved in researching an account. A suspicious activity report (SAR) would then be completed if warranted.
Some banks and credit unions are now also using features in their core software system and other electronic document management systems to delineate parameters that automatically trigger a suspicious activity notification. This is especially important for larger institutions with multiple branches; suspicious activity would otherwise be difficult to pinpoint if transactions were spread across a variety of locations with a number of tellers.
A Bank’s Responsibilities with SARs
Once an SAR is generated, a financial institution is required to file it with the Financial Crimes Enforcement Network (FinCEN) and retain all associated documentation for a five-year period, either as a hard copy or electronically. Auditors will also likely request SAR files, so it is imperative that these records be complete and easily retrievable.
Continue reading about SAR documentation best practices.
Tracking Resources
For more information about bank tracking and management, be sure to check out our extensive resource library with free spreadsheets, whitepapers, and eBooks.
Searching for more banking definitions? Check out our banking definitions page.
Explore more resources
Datasheet: Unify, Modern Deposits Automation Platform
Unify means modern simplicity for your bank or credit union - on any browser or operating system. With the market's only patent-pending, single API, and cloud-native solution, go-to-market your way: power all full- and self-service workflows with Unify, or...
Read More »
AccuAccount: Solution Overview Brochure
Track and manage every loan document in one system and streamline loan management from application through servicing with our core-integrated software platform. From loan application automation, to drag-and-drop document imaging, to document tracking, and five...
Read More »
Alogent Fraud Mitigation Solutions
Check fraud - using paper or electronic checks to obtain money illegally - can occur at any step in the user journey and from any device or workflow by forging an account holder’s signature on a stolen check, altering a legitimate check, or writing a...
Read More »
Related articles
Tuesday 26 March 2024
Check Fraud: Common Examples and How to Stay Ahead of the Fraudsters
Ashish Bhatia,
Vice President, Product Management
Check fraud is the most prevalent type of fraud at financial institutions, costing billions of dollars in losses annually, while impacting millions of account holders…
Learn More »
Wednesday 20 March 2024
Accelerating Efficiency by Leveraging Alogent’s Full Suite of Process Automation Solutions
Cameron Marks,
Director, Product Management
Why should your bank or credit union consider implementing FASTdocs alongside AccuAccount? For financial institutions looking to retire legacy systems, consolidate vendors, and reduce paper-based…
Learn More »
Thursday 14 March 2024
Show Me the Money: Best Practices to Accelerate Funds Availability through Check Deposits
Wendi A. Klein,
Vice President, Marketing & Communications
The Financial Brand recently published an article highlighting how faster access to funds could reshape the battle for deposits. Would you implement new processes if…
Learn More »
Tuesday 12 March 2024
Jenn Mitchell,
Vice President Sales, AccuAccount
Delinquent loans seem to be on the rise at financial institutions across the United States. Such trends may indicate macroeconomic difficulties, but they also pose…
Learn More »
Tuesday 5 March 2024
Cameron Marks,
Director, Product Management
Automating a single task may not seem like a big savings in the grand scheme of things. But, what if that task occurred multiple times…
Learn More »
Monday 26 February 2024
Banking Innovation: Are You Keeping Up with Transaction Processing Trends Shaping the Banking Market?
Wendi A. Klein,
Vice President, Marketing & Communications
The payments landscape continues to take shape with alternative payment and cashless transaction methods, yet in the face of persistent digitalization, checks remain a viable…
Learn More »
Thursday 15 February 2024
Meeting Gen Z’s Banking Demands and Remaining Relevant with the Largest Generation in American History
Wendi A. Klein,
Vice President, Marketing & Communications
The year is in full swing, and financial institutions are keenly observing the emerging powerhouse of economic influence: Generation Z. This generation isn’t just digitally…
Learn More »
Tuesday 6 February 2024
From Loan Imaging to Cold Storage: Extend AccuAccount’s Automation Potential with Additional Content Management Capabilities from Alogent
Jenn Mitchell,
Vice President Sales, AccuAccount
Efficient document and information management is increasingly important for modern financial institutions. Paper documents, siloed information, and outdated technology create operational bottlenecks that can be…
Learn More »
