Independent Banker - April 2017 - 70

Risks & Rules
communication to branches about
current schemes. All of these activities
maintain high fraud awareness.
In 2015, the bank added two new
programs that contributed to the
decline in fraud losses. Fraud Stopper
congratulates staff members
who detect a suspicious check or
bill and report it to the fraud group.
In addition to kudos, the bank communicates
the situation to staff as
a learning tool. One recent Fraud
Stopper winner uncovered a large
check-kiting scheme by looking at the
pattern of a customer's transactions.
" In many cases, they'll catch the
fraud upfront and not allow it to
occur, " says Paul Bakkum, chief risk
offi cer, Choice Financial Group.
Regular updates are key. Choice
started a monthly meeting called
Fraud Squad with representation
from frontline staff, operations, IT,
risk and loans. It also added software
that monitors millions of daily transactions
to determine if something is
out of the ordinary.
Karsky adds that a simple yet
effective part of Choice's training is
teaching tellers to be good listeners.
She says it's amazing how much
personal information customers will
share with them.
" Customers will sometimes comment
on the source of their funds and
say, 'This check just came in the mail,
and I won the sweepstakes!' and our
ears perk up and we ask questions, "
she says.
Training tools
Thompson says the best training
material is easily accessible on the
U.S. Currency website (uscurrency.
gov), which details the security
features of each denomination
and offers videos on topics such as
authenticating currency and how it
gets into circulation.
In addition to training, he recommends
UV detectors, which he often
fi nds are lacking in branches. These
lights allow tellers to identify security
features easily. In the most recent versions
of the $100 note, for example,
the security thread glows pink under
________
__
70 ICBA IndependentBanker April 2017
UV light. In the $50 bill it glows
yellow, and in the $20 bill it glows
green. If counterfeiters have washed
a bill and re-inked it with a higher
denomination, UV light-and tellers'
knowledge-will foil the scheme.
" Very few [banks] use ultraviolet
detectors to their full capabilities,
and they generally aren't distributed
so tellers can get to them easily, " says
Thompson. " I always recommend you
have them, because fake bills show up
under UV light in a second. "
UV lights also can illuminate
alterations made to debit cards, credits
cards and driver's licenses.
As far as training, community
banks can get help from the Secret
Service; the agency provides training
on currency authentication as part
of its educational mission. Last year,
the Secret Service conducted more
than 577 educational and training
seminars. Banks can arrange these
trainings through fi eld offi ces across
the U.S. (www.secretservice.gov/
contact/fi eld-offi ces).
The good news is that trainers have
plenty of time before the next new
bills are released. The U.S. Bureau of
Engraving and Printing is redesigning
the $5, $10 and $20 notes to debut
sometime after 2020. For security
reasons, the new $10 bill, honoring
the heroes of the women's suffrage
movement, will be the fi rst released
into circulation.
Susan Thomas Springer is a writer in
Oregon.
_____________
Great American fraudsters
Since the fi rst English settlers landed in the New World,
people have been scamming the monetary system.
Samuel C. Upham
During the Civil War, Upham built a counterfeiting
enterprise in order to help the Union win the
war. His " legal " scheme pumped $15 million of fake
money into the South, which eventually led to the collapse
of the Confederate economy.
Emerich Juettner
Nobody thought $1 bills would be worth faking, and Juettner's replicas
were laughably bad. But he kept his scheme going from 1938 to 1948. Also
known as Edward Mueller, he eventually netted a four-month prison sentence
and a fi ne of $1, and his story was documented in the 1950 comedy
Mister 880.
Frank Abagnale Jr.
Over a fi ve-year period in the 1960s, Abagnale swindled more than
$2.5 million through check fraud and other cons. He is now an authority
on catching and preventing forgery, and his story hit the big screen in the
2002 fi lm Catch Me If You Can.
Frank Bourassa
A Canadian citizen, Bourassa produced more than $200 million in fake
U.S. $20 bills using printing equipment, software and a blend of cotton and
linen paper. He was arrested in 2012. After serving six weeks in prison, he
became a consultant to businesses looking to avoid counterfeiters.
-Sara Schlueter
http://www.qmags.com/clickthrough.asp?url=www.secretservice.gov/contact/field-offices&id=20215&adid=P70E1 http://www.qmags.com/clickthrough.asp?url=www.uscurrency.gov&id=20215&adid=P70E2
Independent Banker - April 2017

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