For nearly 125 years, Denison State Bank has proudly served generations of account holders throughout its Kansas community. Renowned for exceptional customer service and commitment to building long-term relationships, the bank has been a trusted financial partner, especially for local agricultural businesses.
In recent years, the bank faced a significant rise in check fraud, prompting leadership to take swift, proactive steps to mitigate risk. Heather Deneault, Vice President of Deposit Operations and Branch Management Officer, recognized early that a forward-thinking fraud prevention strategy was critical not only to safeguard customer assets, but to also maintain the deep trust the bank has built with its community.
In response to rising check fraud, Denison State Bank expanded its fraud prevention team and invested in new technologies, relying on its nearly 25-year partnership with CSI for reliable solutions and expertise. By combining internal knowledge with trusted technology, the bank built robust, layered defenses designed to detect fraud earlier, ease operational burdens, and respond more effectively.
Yet even for the most prepared institutions, the rising speed and complexity of check fraud attempts pose new challenges that demand faster, smarter responses.
Laying the Foundation for Smarter Fraud Prevention
Despite a national decline in check usage, from 7% in 2016 to 3% in 2024, the monetary value of fraudulent checks continues to climb. For community banks, that trend poses a serious threat. Each check represents not just a transaction, but a potential risk. With roughly 34,000 checks cleared every month, Denison State Bank needed a solution that could keep its customers protected and losses at bay.
“When it comes to check fraud, timing is everything,” Deneault emphasizes. “We have a very narrow window to identify and return a check before it causes a loss.”
Unchecked fraud erodes the essential trust between a community bank and its accountholders. They trust their bank to protect them, and when a fraudulent check clears, it creates a difficult situation for both parties. “When community banks miss check fraud, it puts both the customer and the institution in a tough spot,” said Deneault. “Suddenly, the accountholder is out thousands of dollars, and we’re left deciding between absorbing the loss or risking damage to the relationship and our reputation. That’s not a position any community bank wants to be in.”
Community banks know that check fraud isn’t going away, and it’s only a matter of time before it hits home. For Denison State Bank, the question was never if it would happen, but how quickly could they detect and stop it before damage was done.
Implementing A Proactive Approach to Check Fraud
When exploring new ways to combat check fraud, Heather Deneault knew exactly where to turn. With a proven track record of success with CSI products, she was confident the partnership would once again deliver, this time by taking their fraud prevention strategy to the next level.
For Deneault, implementing CSI’s check fraud solution was an opportunity to stay ahead of an emerging threat. “We saw it as a chance to be proactive,” she said. “Not just to catch fraud, but to protect our customers before any damage can be done.”
CSI’s Check Fraud solution empowers bank tellers with real-time detection capabilities, helping to intercept fraudulent activity before it impacts customers. The tool leverages high-resolution image analysis across 24 scorable check attributes to identify and stop potentially fraudulent transactions right at the teller line.
Beyond teller transactions, the solution gives fraud analysts a faster, more efficient way to identify suspicious checks across all deposit channels, including ATM, remote and mobile capture. With less time spent on manual reviews, the team can focus more on strategy and other areas of risk.
As for implementation, the rollout was seamless. “Our fraud analysts really like how the system works,” said Deneault. “It fits right into their workflow without slowing them down.” And within weeks, Denison State Bank saw results in real time.
“Since implementation, the system has flagged and helped prevent over $40,000 in check fraud.”
Heather Deneault
Vice President of Deposit Operations and Branch Management Officer
Putting a Stop to Check Fraud
With this enhanced defense strategy, Denison State Bank has not only prevented fraud but also boosted morale and confidence among frontline staff. “Our tellers play a critical role in stopping check fraud in real time, and having this solution in place has truly boosted their confidence,” said Deneault.
As check fraud impacts financial institutions more every year, a solution to protect account holders is essential. At Denison State Bank, the average fraudulent check caught exceeds $10,000, highlighting the high stakes and the urgent need to catch fraud before the damage is done.
“We’re a rural Kansas bank, and fraud hits community institutions harder than many realize,” Deneault explains. “Combating it takes a team effort, from our staff to the broader community.”
Confident in their check fraud defenses, Denison State Bank is already looking ahead, expanding its fraud team and turning its attention to broader initiatives like AML and BSA to build a more comprehensive fraud prevention strategy. Through it all, CSI remains a trusted partner, providing the tools, support and expertise Denison needs to confidently protect its account holders and serve its community.