Stopping Check Fraud, Uncover fraud methods and how CheckAlt combats them.

Fintech Confidential

Dive into the intriguing world of check fraud as Sherah Spark, Head of Compliance and Legal for CheckAlt, sits down with host Tedd Huff at CheckAlt’s Miami office in this compelling episode of Leaders One on One by Fintech Confidential.

If you think checks are obsolete, think again. Sherah reveals some surprising statistics that show the continued relevance of checks, like the fact that 46% of people have written a check in the last 30 days. Shocking, right?

Sherah’s career in the financial sector began in banking, working with mortgages and underwriters. This experience laid a solid foundation for her current role at CheckAlt, where she ensures robust compliance and risk management practices. During her conversation with Tedd, she explains how CheckAlt leverages advanced technologies such as blockchain and AI to stay one step ahead of fraudsters. However, Sherah emphasizes that technology alone isn’t enough; human oversight is crucial for truly effective fraud prevention.

One of the most fascinating aspects of their discussion revolves around check fraud tactics. Sherah explains schemes like check washing, where fraudsters use chemicals or technology to alter checks. They even exploit mobile devices to deposit fake checks. CheckAlt combats these tactics with real-time monitoring and scoring systems to flag suspicious checks. They also use dark web services to track and stop fraud before it happens, ensuring that they can respond to threats proactively.

Sherah sheds light on the delicate balance between speed and risk in the fast-paced fintech world. Companies need to act quickly but also cautiously to prevent fraud. She discusses with Tedd how CheckAlt has integrated a risk-aware culture into its operations, from sales practices to technology decisions. This approach helps them make strategic choices that keep customers safe while staying competitive.

Partnerships are a crucial part of CheckAlt’s strategy. Sherah talks about how these collaborations enhance instant payment security. Instant payments are convenient but risky, as fraudsters can exploit their speed. By working with various partners, CheckAlt enhances its tools to manage and secure these transactions better, ensuring both speed and safety.

For financial institutions exploring new areas like ACH or lockbox functions, Sherah offers valuable advice. She suggests identifying specific pain points and developing strategies to address them. Whether it’s dealing with operational errors or managing product risks, understanding and tackling these issues is key to effective risk management.

Sherah also highlights CheckAlt’s commitment to excellence. The company invests heavily in talent and expertise, ensuring they remain industry leaders. They focus on providing exceptional customer service and maintaining high standards in risk and compliance. This dedication ensures that they not only stay ahead of fraud but also build strong, trust-based relationships with their clients.

Another interesting point Sherah touches on is the importance of combining technology with human judgment. While tools like AI can detect patterns and flag potential fraud, human intuition is crucial for final decisions. This blend of tech and human oversight creates a stronger defense against fraud.

Sherah also discusses the impact of real-time monitoring in preventing check fraud. By keeping an eye on transactions as they happen, CheckAlt can stop fraudsters in their tracks. This proactive approach means they can catch fraudulent activities before they cause significant harm.

Moreover, CheckAlt’s use of the dark web to monitor and track fraud attempts adds an extra layer of security. By scanning online black markets, they can identify and address threats before they escalate. This shows their commitment to staying ahead of fraudsters using every tool available.

Join the conversation with Sherah and Tedd in this episode packed with insights into the world of check fraud and how companies can stay ahead of these challenges. Sherah’s expertise sheds light on balancing speed and caution in the fintech industry, providing a roadmap for other companies to follow.

Stay tuned for more episodes of Fintech Confidential, where we bring you the latest in financial technology and expert discussions.

Don’t forget to like, share, and subscribe for more insights from industry leaders!

Key Highlights

CheckAlt’s Clever Use of the Dark Web

Discover how CheckAlt uses dark web services to monitor and stop fraud. By checking online black markets, they can spot and tackle suspicious activities before they affect customers.

Tech Meets Human: The Best Way to Stop Fraud

Combining technology with human oversight is crucial in fraud prevention. While AI and machine learning can detect patterns, human judgment is essential for making final decisions.

Shocking Check Stats: Are Checks Really Dead?

Find out why 46% of people have written a check in the last 30 days. Learn about the continued relevance of checks and how CheckAlt is innovating to keep this traditional payment method secure.

Fast Payments, Big Risks: Instant Payment Challenges

Instant payments are convenient but come with risks. Explore the challenges of instant payments and how CheckAlt partners with companies like Grail Pay to enhance security and manage real-time transaction risks.

Why Checks Are Here to Stay

Discover the surprising durability of checks in the financial world. Learn why many people still use checks and how CheckAlt’s technology ensures this method remains secure.

Check Fraud Tricks: What You Need to Know

Learn about the sneaky ways fraudsters alter checks with chemicals and technology, such as check washing. Find out how CheckAlt combats these tactics with advanced tools.

Secrets of Successful Risk Management

CheckAlt integrates risk management into daily operations, from sales to tech decisions. A risk-aware culture helps them make smart choices and protect customers effectively.

The Role of AI in Fraud Detection

Artificial intelligence is a powerful tool in fighting fraud but needs human help. Discover how AI is used at CheckAlt to detect fraud quickly and accurately, ensuring customer safety.

Building a Risk-Aware Company

CheckAlt has created a culture focused on risk and compliance. This approach helps them stay ahead of potential problems and ensures they provide top-notch service to their clients.

Understanding CheckAlt’s Compliance Mission

Learn about CheckAlt’s mission to keep customer safety at the forefront while balancing the need for speed in the fintech world. Their approach to compliance and legal matters is crucial to their success and customer trust.

Takeaways (five takeaways)

1️⃣ Protect Your Checks Now

Take immediate steps to safeguard your checks from fraud. Implement practical measures to secure your transactions and avoid common scams like check washing.

2️⃣ Fast and Safe Fintech Tips

Adopt strategies to balance speed with top-notch security. Learn how to make quick, secure decisions that protect your business and customers.

3️⃣ AI + Human = Less Fraud

Enhance your fraud prevention by combining AI with human oversight. Use this powerful combo to improve your security measures and catch fraud early.

4️⃣ Real-Time Monitoring Hacks

Start using real-time monitoring to prevent fraud. Actively watch transactions as they happen to stop fraudsters and protect your finances.

5️⃣ Risk Awareness Secrets

Build a risk-aware culture in your company. Implement strategies to integrate risk management into daily operations and stay ahead of threats.

Links:

CheckAlt Website: https://checkalt.com

LinkedIn: https://www.linkedin.com/company/checkalt

LinkedIn - Shai Stern: https://www.linkedin.com/in/shaistern1

X: https://x.com/checkalt

YouTube: @checkalt3239

Fintech Confidential Links:

Listen: https://fintechconfidential.com/listen

Subscribe: https://fintechconfidential.com/access

LinkedIn: https://www.linkedin.com/company/fintechconfidential

X: https://x.com/FTconfidential

Instagram: https://www.instagram.com/fintechconfidential

Facebook: https://www.facebook.com/fintechconfidential

Supporters

CheckAlt: a game-changer in the financial world: ClearingWorks. Simplify your financial management with a one-stop solution for all your AR needs and with a single login. Intrigued? Visit https://clearingworks.com to schedule your demo today

MPC the Digital Commerce Event: Why MPC24? As a leader in the fintech space, whether you're a C-suite executive, a technologist, a startup innovator, or a government official, MPC24 offers an unparalleled opportunity to engage with the latest trends, technologies and thought leaders shaping the future of money. Register now and Save https://mpcevent.com/register-now-payment/

LoanPro: As default rates continue to rise and margins compress in lending, financial organizations are searching for solutions that combine operational efficiency with innovation. Look no further, as LoanPro allows lenders to enhance their origination, servicing, collections, and payments using the foundation of a modern lending core. Check out https://loanpro.io/demo to learn how 600+ financial organizations have modernized their tech stack with LoanPro.

Skyflow, the leading data privacy platform trusted by top

financial institutions. Protect your customers' data with Skyflow's innovative

solutions. Get started at www.skyflowsecure.com

Under: Transform Your Merchant Applications with Under. The

Under platform revolutionizes the way ISOs handle merchant applications,

offering a seamless transition to digital forms. Say goodbye to outdated

processes and hello to efficiency. Discover the future of financial

applications at

https://under.io/ftc

HAWK: A game-changing approach to compliance. With real-time

monitoring, adaptive learning, and advanced AI, it cuts false positives,

simplifying your compliance efforts. Upgrade your surveillance with ease. Visit

https://gethawkai.com for more intelligent, more effective

compliance.

Timestamps

00:15 Meet Sherah Spark: Head of Compliance and Legal for Check Alt

00:45 The Surprising Resilience of Checks

01:12 Combating Evolving Fraud with Technology

01:57 Spotlight on Clearing Works

02:27 CheckAlt's Innovative Products

03:06 Sherah Spark's Journey into Fintech

03:21 Early Career in Banking and Risk

04:59 Pioneering Risk and Compliance

05:22 The Importance of Risk and Compliance in Fintech

07:58 Balancing Speed and Risk in Fintech

08:27 The Role of Experience in Risk Management

11:11 Check Fraud Tactics and Prevention

13:22 Advanced Fraud Detection Techniques

20:05 The Role of AI and Human Oversight

22:31 SkyFlow: Building Fast Without Breaking Privacy

23:33 Understanding Risk Appetite and Frameworks

25:27 Grail Pay: Partnering for Instant Payments

28:39 Advice for Financial Institutions on Risk and Compliance

30:42 CheckAlt's Commitment to Excellence

32:20 Conclusion and Final Thoughts

About:

Guest

Sherah Spark: Sherah Spark is the Head of Compliance and Legal at CheckAlt, where she plays a crucial role in shaping the company’s risk management and compliance strategies. With extensive experience in the banking sector, Sherah has a deep understanding of financial risk and compliance. She began her career in the mortgage industry, working with underwriters to evaluate financial profiles, which laid the foundation for her expertise in risk management.

Sherah’s career has been marked by her dedication to creating robust compliance frameworks and mitigating risks in the financial sector. Before joining CheckAlt, she held significant roles at reputable institutions like U.S. Bank and Wells Fargo, where she led several strategic multi-million dollar initiatives and managed complex projects.

At CheckAlt, Sherah is instrumental in integrating advanced technologies like AI and blockchain with traditional risk management practices, ensuring that the company stays ahead of evolving fraud tactics while maintaining a human touch in oversight. She is passionate about driving business growth and customer satisfaction, always putting customers at the center of business decisions.

Sherah holds a Master’s degree from Boston University and an undergraduate degree from the University of Minnesota. Outside of her professional endeavors, she enjoys exploring new destinations, immersing herself in diverse cultures, and seeking inspiring experiences that broaden her perspective.

With her visionary leadership and risk management expertise, Sherah Spark continues to make significant contributions to the financial industry, helping CheckAlt provide innovative and secure payment solutions to its clients.

CheckAlt : CheckAlt is the largest independent provider of receivables management and payment and deposit processing solutions in the U.S., serving more than 1,000 clients across a broad range of industries, including financial institutions of all sizes, property management, healthcare, utilities, municipalities, and nonprofits. Operating as payment channel and demographic agnostic, CheckAlt processes check payments while also supporting electronic payment needs that are accelerating digital transformation. CheckAlt's solutions include lockbox processing across a nationwide hub-and-spoke network of processing sites, consolidated item processing, integrated treasury solutions, and mobile capture services. Learn more at https://www.checkalt.com.

Host:

Tedd Huff: Tedd Huff is the Co-Founder of Voalyre, and the President & Founder of Diamond D3, a professional services consulting firm focused on global payments and marketing. He is also a video podcast host and producer of Fintech Confidential.

Over the past 24 years, he has contributed to FinTech startups as an Advisory Board Member, Co-Founder, and Chief Experience Officer, providing strategic and tactical direction for Global Payments OpenEdge, Heartland Payments, Nuvei, and TSYS, among others, focusing on growth while delivering innovation, process improvements and user experience-driven value to simplify the complexity of payments.

Diamond D3, Media: A media creation, management, and production company delivering engaging content globally