A fraud detection and
security system for financial institutions utilizes a secure
database of information relating to financial transactions of non-account holders who present checks and other instruments for
payment. The
system collects and tracks the frequency of particular aspects of the subject's behavior, and flags deviations from such norms for the purpose of indicating that fraudulent or criminal behavior may be occurring. At such time, the teller or other employee with whom the subject is dealing may stop the transaction, to the benefit of the financial institution and account holder. The
system also allows for law
enforcement to detect related transactions, or a string of criminal activity from the same perpetrator. In the preferred mode, the
system includes a teller collecting information from the non-account holder, including name,
date of birth, address, gender, driver's
license number,
social security number, and / or
telephone number. At the time of the transaction, such data is submitted to the system
database and the
database returns a response code based upon criteria established by the financial institution's desired security measures, accomplished by installation of new
software or by integration of a custom program. The system alerts tellers to suspicious activity, such as when a particular account is accessed more than once in a day, or when the same non-account holder presents items for
payment at multiple branches of a banking institution in a short period of time.