Check fraud remains pervasive with new scam channels evolving

New check fraud tactics, along with new technologies and software, have made fake checks cheaper and easier to produce than ever.

Despite a steady drop of checks in circulation, check fraud remains stubbornly pervasive. The expansion of deposit channels – including mobile and remote-deposit capture – has made preventing fraud more difficult.

High Point, N.C.-based Advanced Fraud Solutions, which provides deposit fraud detection software released a new white paper, “The Changing Landscape of Check Fraud,” on the latest trends and risks related to check fraud. The paper details how the adoption of new deposit channels, to meet member expectations, have evolved check fraud tactics and why checks continue to present a risk to financial institutions, including credit unions and their members.

“Checks still remain the dominant business-to-payment used to fulfill financial obligations across the United States. As technological advances and digitization in payments processing evolves, so too does the landscape of check fraud,” the white paper maintained. “Fraudsters continue to take advantage of access to inexpensive technology, social engineering tactics, and remote business practices to engage in illegal and deceptive check fraud practices.”


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