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Check Cashing Database Solutions

Workers’ compensation fraud is detrimental to all businesses, and places
the burden of fraud firmly on the back of society.
ccdb image

In early 2008, the Attorney General for the State of Florida impaneled the Eighteenth Statewide Grand Jury to tackle the issue of workers’ compensation fraud, which was costing the state, an estimated, $1 billion annually.

One of the most common and organized types of fraud, often found in the construction industry, involved using check cashing businesses to cash large corporate checks in order to make payments to workers of uninsured subcontractors. Fake shell companies were frequently used to rent workers compensation certificates to uninsured contractors enabling them to bid projects significantly cheaper than their law-abiding competitors. Oftentimes, shell companies would be long discarded before regulators ever caught up with them, enabling criminals to continue to operate freely.

The Grand Jury made many excellent recommendations on how to reduce workers’ compensation fraud, but they were unable to solve the problems associated with the organized shell company schemes. In 2011, Florida CFO, Jeff Atwater, convened another work group to study the issue and provide additional recommendations. This second work group concluded that a statewide, real-time database was needed to monitor check-cashing transactions exceeding $1,000. The goal would be to create an increased flow of information between check-cashers, the Office of Financial Regulation, the Division of Workers’ Compensation and the Division of Insurance Fraud regarding commercial/third-party checks, allowing for the efficient and timely detection of fraud schemes.

Veritec responded to the need for a statewide, real-time database by developing, and implementing, a check cashing database system (CCDB), meeting all the state’s requirements.

The CCDB facilitates the needs of Licensees and their customers, while maintaining compliance with all state laws and with minimal interruption to their business. Additionally, the CCDB allows regulators to efficiently and effectively oversee regulatory compliance and maintain administrative and managerial control over their statewide programs.

Like all other Veritec real-time regulatory systems, the CCDB provides 24/7/365 availability and real-time reporting for all of its transactions. The CCDB can also be configured to adhere to, and enforce, the exact specifications of individual state laws. Some of the most common requirements involve licensee submission of:

  • Check amount
  • Transaction date
  • Payor name
  • Payee name
  • Conductor name (if different from payee)
  • Amount of payment instrument
  • Type of payment instrument
  • Location where payment instrument was accepted
  • Fee charged
  • Type of identification presented
  • Identification number presented by the payee or conductor

Veritec’s CCDB System is successfully regulating transactions for Florida, and could be part of the answer in helping your state curb its workers’ compensation fraud. The CCDB technology can also be applied to identify tax evasion and other structured transactions designed to evade regulators and law enforcement.

For more information about our regulatory solutions, contact Veritec at info@Veritecs.com.

 

To view the the full conclusions of the 2nd Fraud Work Group, click here.