During the first half of 2023, FICO’s research revealed a startling surge in bank ATM skimming incidents, marking a 109% increase year-over-year. In the past, skimming mainly targeted non-bank ATMs, such as those found in convenience stores and gas stations. Now, banks make up 33% of compromise locations, up from the previous 20%. Skimming, however, is just one threat out of many faced by financial institutions. Other forms of fraud are on the rise, as well as jugging, the robbing of customers as they exit banks. In light of these escalating risks, banks and other financial institutions can leverage license plate recognition (LPR) technology to combat these threats and safeguard both their operations and clientele.
Enhance Security
The most common use of license plate recognition (LPR) in financial institutions is to strengthen security measures. Through LPR systems, banks gain the ability to monitor and track vehicles entering and exiting the premises. This allows them to identify suspicious activity quickly, such as the presence of a vehicle in the parking lot after business hours, possibly indicating installation of ATM card skimmers. Additionally, the system can flag vehicles that have been in the parking lot for unusually long periods of time, which may signal individuals scouting for potential jugging victims. If an incident does occur, the bank can refer to the license plate logs to determine the responsible vehicle(s).
Fraud Prevention & Risk Mitigation
LPR technology can also be useful in preventing fraud and mitigating risks for financial institutions. The system can flag vehicles involved with fraudulent activities or high-risk transactions, creating a watchlist within the LPR database. When these flagged vehicles are detected within the premises or any affiliated locations of the bank, the LPR system instantly triggers an alert, prompting security teams to intervene. This strategy enables financial institutions to implement preventive measures and safeguard their assets against potential threats.
Investigate Claims
Banks can even use LPR capabilities to streamline the process of searching and locating evidence for investigations. In scenarios where a customer claims that the drive-up ATM failed to dispense the correct withdrawal amount, verifying the validity of the claim becomes a crucial task. Without LPR technology, security teams at the bank would need to sift through extensive hours of surveillance footage, a task made more challenging if the client has provided inaccurate dates and times. However, with an LPR system in place, the bank can efficiently retrieve incident footage by simply using the client’s license plate number, accelerating the investigation process and ensuring accurate resolution.
Streamline Customer Experience
Beyond their primary role in enhancing security and monitoring, LPR systems can be used to improve customer experiences within drive-through banking services. Banks have the option to register their regular clients in the LPR system to receive notifications when they arrive. As these customers approach the drive-through line, the system instantly alerts the teller, providing details like the vehicle and associated customer’s name. This enables the teller to provide personalized services and expedite transactions. Not only does this reduce wait times but it also strengthens customers relationships, ultimately leading to an overall improvement in customer satisfaction levels.
Upgrade Bank Security & Efficiency with PLACA.AI
From enhancing security measures to streamlining customer experiences, license plate recognition (LPR) offers a myriad of benefits for financial institutions. Experience the benefits yourself with PLACA.AI, our cloud-based LPR service. The software seamlessly integrates with existing IP camera systems, allowing you to upgrade your current security infrastructure with minimal effort. Reach out to our sales team today to subscribe to PLACA.AI at +1 (214) 988-4302 or at [email protected]. You can also see PLACA.AI in action by signing up for a free live demo through the link provided below.