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White papers: Fraud & Anti-Money Laundering

The world of fraud is constantly shifting. It is always the intention at Verafin to stay a step ahead of financial criminals by providing our customers with an intelligent solution. Our fraud and BSA/AML white papers look at problems facing fraud and compliance departments and considers how next generation technology provides the optimal solution. Check out our fraud and anti-money laundering white papers below:

What's available to read?

[New] - Financial Institutions Face High Expectations to Detect and Report Invisible Victims of Human Trafficking and Smuggling

Two particularly detestable criminal industries, Human Trafficking (HT) and Human Smuggling (HS), produce significant illicit proceeds that inevitably move through the financial system. These criminal enterprises present distinct challenges and various risks to financial institutions if not detected and reported under their BSA regimens. It is only a matter of time before a financial institution finds themselves in the crosshairs if they do not take immediate action to address and attempt to prevent these elaborate, inhumane crimes.

In this white paper, Financial Crime Consultant Chris Swecker discusses:

  • The rare global consensus on the need for international efforts to share intelligence and attack the criminal enterprises that are often behind these insidious industries.
  • The double victimization that occurs and the development of special Anti-human Trafficking Task Forces.
  • FinCEN’s “Guidance on Recognizing Activity that May be Associated with Human Smuggling and Human Trafficking - Financial Red Flags” Advisory, issued September 2014.
  • Efforts to establish an industry wide consortium approach to make criminal enterprise links across multiple FIs utilizing section 314(b) of the USA Patriot Act.

Financial Criminal Enterprises Innovate to stay ahead of Anti-Money Laundering and Financial Crimes Programs

Chris Swecker’s highly informative new white paper showcases how virtual currency can be exploited as the perfect storm of traditional crimes, fraud and money laundering.

Chris delivers strong and compelling commentary highlighting how:

  • virtual currency has drawn the attention of fraudsters, money launderers, regulators and law enforcement
  • the largest money laundering operation in US history used this new “currency”
  • Bitcoin combined with Bitlaundry can function as a transaction anonymizer
  • banks should not overlook the impact on their fraud and AML responsibilities
  • financial crimes “innovation” usually piggybacks off new legitimate financial products and channels

Fraud and Money Laundering: Birds of a Feather

Sample highlights from Chris Swecker, retired Assistant Director FBI, new white paper:

  • Intriguing real-life financial crime cases support the compelling argument that treating criminal activities separate from money laundering “has the effect of creating a severe drag on the effectiveness of both AML and fraud related programs”
  • One bank’s failure to detect and file SARs related to a fraud scheme resulted in charges with failing to maintain an effective AML program and cost it 16% of its value
  • How bad guys love the pigeonholed approach and use it to their best advantage
  • Separating financial crimes and money laundering serves to enable organized fraud schemes to inflict staggering losses over long periods of time
  • A US Attorney’s ominous warning - “Federal law requires banks to implement a robust and proactive anti-money laundering program to detect fraud and protect the public from harm. Other financial institutions should heed this warning: the Bank Secrecy Act applies to more than just drug and terrorist financing.”

The Rise of Eurasian Financial Criminal Enterprises

The New Mafia

Chris Swecker (retired Assistant Director, FBI and former Global Security Director, Bank of America) has just published an eye-opening white paper on "The New Mafia" - a new crime business model that dominates the financial landscape.

Highlights include:
  • Characteristics of the "New Mafia"
  • Background information as to how these criminal organizations became so technically savvy and well versed in intelligence "tradecraft"
  • The new threats posed by these virtual, viral and well networked criminal enterprises
  • The Achilles heel of this new crime model

Bank Secrecy Act 2.0

Electronic Filing and Analytics Raises the Bar for Regulated Institutions as FinCEN Executes Technology Modernization Deployment

Chris Swecker (retired Assistant Director, FBI and former Global Security Director, Bank of America) says that "BSA enforcement is on the brink of a new era." Chris discusses:

  • Recent advances in FinCEN's analytics capabilities
  • How regulatory and law enforcement stakeholders will begin to hold financial institutions to a higher standard
  • The linkages between money laundering, crime and terrorist financing
  • The importance of consolidating data sources that are utilized to detect BSA activities

Stopping the Flow of Stolen Money

Using transaction monitoring to stop online banking fraud

This white paper argues that online banking fraud is constantly shifting. Even the traditional role of the money mule is changing. The most effective and efficient means to stopping online banking losses is behavior-based software that applies progressive analytics to back-end transaction monitoring. Most importantly, the monitoring results in alerts that help fraud detection professionals stop transfers before the money is gone.

Layered Security: A FRAML™ Approach to Anomaly Detection

In June 2011, the Federal Financial Institutions Examinations Council (FFIEC) issued a supplement to their 2005 guidance entitled “Authentication in an Internet Banking Environment”. The supplement is a response to “an increasingly hostile online environment” and makes clear that since the release of the original guidance the threat landscape has shifted dramatically, with fraudsters developing and deploying “more sophisticated, effective, and malicious methods to compromise authentication mechanisms and gain unauthorized access to customer’s online accounts.”

This white paper discusses two factors that play a significant role in the fight against fraud: layered security and a breakdown of silos. The paper also highlights the role of a centralized, behavior-based, cross-channel transaction monitoring platform as a core security layer that offers a more robust and sophisticated approach to effectively uncover anomalies in customer behavior.

The Growth of Debit Card Fraud at the Gas Pump

Progressive Transaction Monitoring as a Proactive Defense

This white paper explores the problem of gas pump skimming. It offers a number of real world stories and considers how progressive transaction monitoring can help financial institutions protect both their customers and reputations, which in many ways are two sides of the same coin.


  • Why gas pumps?
  • How are they doing it?
  • Real-world stories
  • How progressive transaction monitoring technology helps

A Brief Overview of Cross-Channel Fraud, the Financial Intelligence Unit and the Role of Technology

With the growth in cross-channel fraud affecting financial institutions across the country, more and more are looking to more effective ways to detect and understand fraud activity occurring across the enterprise. Increasingly, institutions are developing internal Financial Intelligence Units (FIUs) to help create a more complete, enterprise-wide view of activity.

This white paper:

  • Looks at the emergence of cross-channel fraud
  • Considers the role of shared intelligence and communication in the success of an FIU
  • Discusses the role a centralized transaction monitoring and case management system plays in an effective and efficient FIU effort

Combating New Account Fraud: Integrating account opening, risk-rating & transaction monitoring to stay a step ahead

New accounts are abused at an astonishing rate, becoming synonymous with identity theft. In an effort to remain compliant with Section 326 of the USA PATRIOT Act, FIs must obtain identifying information about new customers and assess the level of money laundering risk they present to the institution. However, fraud investigators can use this as a tool in their arsenal to stop fraudulent activity on accounts opened using stolen personal information.

In this white paper, you will discover:

  • The advantages of integrating your Customer Identification Program (CIP), ongoing risk assessment and anti-money laundering (AML) and anti-fraud monitoring.
  • How next generation technology integrates these elements into a single platform, creating a complete customer profile.
  • How the integration of these elements increases your efficiency and helps you minimize potential new account fraud losses.

Reducing debit card fraud losses: Pinpointing compromised cards through the identification of Common Points of Purchase

With news of data breaches and debit card skimming rings sweeping across the country, financial institutions must find a way to discover and isolate compromised debit cards quickly before the fraud losses spiral out of control. But how can Fis best uncover and isolate the danger?

This white paper identifies an effective means for reducing the impact of this fraud tsunami.

The white paper discusses:

  • The growth of skimming and data breaches involving debit card information.
  • The importance of discovering a Common Point of Purchase (CPP).
  • Two scenarios that illustrate how advanced technology can quickly and efficiently isolate debit cards used at potentially compromised points of purchase.

Protecting your reputation: How integrating advanced technology and rich data puts you a step ahead of financial crime.

Are you missing suspicious activity? Or are you filing Suspicious Activity Reports (SARs) unnecessarily? Your SAR reports may not tell the full story.

Our latest white paper discusses the impact advanced fraud detection and BSA/AML compliance software that integrates rich data sources can have on suspicious activity detection efforts. Specifically:

  • How improved detection reduces the risk to your institution and its reputation
  • How advanced technology makes BSA/AML and anti-fraud processes more efficient
  • The potential availability of rich data sources and how they help your suspicious activity detection efforts
  • Stopping financial crime losses by catching activity sooner

Complex money laundering schemes: Using advanced technology to improve your detection efforts

Criminal activities, human trafficking and organized crime have reached unprecedented levels of organization and complexity. This organizational complexity translates into intricate and sophisticated schemes to launder, or "clean", the capital obtained from illegal operations.

Download our latest white paper to learn:

  • How criminal activities such as human trafficking and organized crime are leading to complex money laundering problems.
  • About the increased pressure state and federal regulators are applying to non-compliant financial institutions.
  • How next generation, anti-money laundering technology can help you uncover complex money laundering scenarios.

Vendor Management: How Verafin can help improve the process

Learn how Verafin can help improve vendor management processes and why FRAML integration makes sense.

Behavior-Based Transaction Monitoring: Protecting Against Online Account Fraud

Read about how a behavior-based transaction monitoring solution can be a powerful tool in a financial institution’s fraud detection arsenal.

Check 21 & Remote Deposit Capture

This white paper offers a brief introduction to electronic check fraud. It discusses how check use is changing in the face of new laws and technologies. The paper also touches on a number of red flags that a financial institution can watch for to protect itself and its customers from electronic check fraud.

Online Account Takeover

Man-in-the-browser. ACH fraud. Money mules. These are just a few of the elements of online account takeover covered in this white paper. Red flags and best practices are also highlighted.

Building a Better Mouse Trap: How real-time risk scoring strengthens a financial institution's protection against financial crime

Behavior-based monitoring affords a significantly increased level of protection against financial crime, by enabling intensified scrutiny across a financial institution’s entire spectrum of customers.

Debit Card Fraud: Trends & Typologies

This white paper discusses current debit card use and debit card fraud trends and examines several specific debit fraud scenarios that represent a sample of both common and emerging debit card fraud trends faced by card holders and financial institutions today.

FACTA Red Flags

Combining FACTA Red Flags with behavior-based fraud and AML software can help you better detect identity theft.