Fraud Management & Cybercrime , Fraud Risk Management

Check Fraud, First-Party Fraud to Rise in 2023

Expert Shares How Banks Can Prepare to Tackle These Types of Scams
Frank McKenna, chief fraud strategist, Point Predictive

Check fraud, first-party fraud and AI-related fraud will increase on a massive scale in 2023, thanks in large part to growing insider threats and the global economic slowdown. Frank McKenna, chief fraud strategist at Point Predictive, explains how banks can prepare to tackle these types of scams.

See Also: Webinar | Everything You Can Do to Fight Social Engineering and Phishing

"I think check fraud is going to hit $24 billion or more this year. This will be a 50% increase from the last time it was measured in 2018. You are going to see banks start to implement newer technologies. You are going to see banks start to try to solve the problem of these identity theft and fake accounts that are getting in bank accounts and depositing these fake checks."

He predicts that banks will discourage customers from writing checks and some may stop issuing checks altogether. "I think that's going to be a big story in fraud," he says.

In this video interview with Information Security Media Group, McKenna also discusses:

  • The increasing problem of first-party fraud as economic conditions tempt more employees and customers to commit illegal acts;
  • The changing nature of scams and first-party fraud and how AI tools such as ChatGPT will create more convincing lures for victims;
  • Why biometrics and passwordless authentication will gain momentum.

McKenna has advised more than 200 banks, lenders and finance companies worldwide to help them achieve reductions in fraud. He also provides fraud management tips through his daily blog,

About the Author

Suparna Goswami

Suparna Goswami

Associate Editor, ISMG

Goswami has more than 10 years of experience in the field of journalism. She has covered a variety of beats including global macro economy, fintech, startups and other business trends. Before joining ISMG, she contributed for Forbes Asia, where she wrote about the Indian startup ecosystem. She has also worked with UK-based International Finance Magazine and leading Indian newspapers, such as DNA and Times of India.

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