Archive for July, 2010
Government’s Need to Stem Improper Payments Mirrors Banking Industry’s Need for Same
Jul 23rd
Improper payments have been a worsening hemorrhage for the Federal government for longer than a decade. Passage of the Improper Payment Information Act of 2002 was an early signal that the costs were headed even higher. Targeting a $110 billion source of government waste makes sense. Signed into effect by President Obama yesterday the Improper Payments Elimination and Recovery Act targets deficit reduction by ending wasteful spending resulting from payments made in the wrong amount, to the wrong person, or for the wrong reason.
It is equally important that banks and payment processors look at the costs and risks created by the financial system’s own “improper payments” dilemma presented by the marked increase in exception items within the payment stream. By this, I mean that there has been a notable increase in the level of fraud and systemic error in the payment processing environment as a whole. We talk about it all the time with our customers. Our primary focus as a company is to identify and resolve these issues. (CONIX issued a news release expressing its position on improper payments yesterday, read the release at http://www.conixsystems.com/News/pr_InappropriatePaymentsr.asp.
Why Banks Must Find Dupes Sooner
Jul 14th
CONIX Systems President of Technology, Frank Stokes, was invited to submit an article to Digital Transactions for its July issue emphasizing the need for earlier detection of duplicate payments in order to minimize the risks to banks and their customers. Read the complete article at our website.
Banks should be prepared for increased duplicates and fraud occurrences related to expansion of mobile banking.
Jul 8th
“The urgent need for banks to accelerate duplicates and other exception item payment types is highlighted now that Top 10 bank JP Morgan Chase has publicized its remote mobile capture iPhone application. As reported by American Banker today, this will ‘help propel mobile banking from a niche to a mainstream product,’ – a concern CONIX has expressed both in American Banker in May and in Digital Transactions in July. Make no mistake, mobile deposit will be a very popular business and consumer accountholder convenience tool that will create a tsunami of duplicates and opportunities to perpetrate fraud.”
