It's Beginning to Look a Lot Like Check Fraud
Paul Clarke, Vice President of Financial Services Client Management
As we head into the holidays, we’ll be seeing more attempts at check fraud. Consumer check fraud seems almost old-fashioned. Could it still be a problem? Read on and find out!
FRAUD! It’s a word that no financial Institution wants to hear. But it’s one that needs to be top-of-mind. Check fraud doesn’t discriminate; it’s relentless; it’s enormously adaptable. It has been an unwanted visitor at the door, and as we approach holidays, it can become a nightmare.
We know that fraud has always been there, but with the advancements in technology like AI, it is becoming harder for financial institutions to manage. The real problem is that fraudsters are getting smarter and more sophisticated.
Whether we’re talking about BIN attacks, debit card fraud, ATM fraud, Phishing, Smishing, Vishing, wire & ACH fraud, or identity theft, some threats are becoming more difficult to mitigate.
With all of the sophisticated technology, online tools, and time-tested scams available to bad actors, one of the largest and most successful types of fraud is still check fraud. That’s right, old-fashioned physical check fraud is rampant in today’s financial landscape.
For both commercial and consumer checks, there are some powerful tools available to help prevent a financial institution and its customers from being victims of check fraud.
Though it may seem like an outdated method, consumer check fraud has seen a huge uptick in recent years. Why checks of all things? Checks can be stolen from the mail, altered, and then cashed, creating huge profits for the fraudsters and big losses for financial institutions. There are some worrying statistics out there to show the breadth and scale of check fraud.
In the 12-year period from 2012 to 2024, the volume of checks being written in the US fell by 45%. In the same period attempted check fraud rose by a staggering 525%. Fewer checks were used overall, but actual fraud attempts grew to 6 times the 2012 figure.
So, what can you do?
Consumer check fraud prevention is now more important than ever. At Lasco we can provide access to the tools you need to help fight against threats like check fraud. Those tools include:
- Image Tests to Confirm Items are Valid
- Signature and Check Verification
- Risk Scoring Deposited Items
- Transaction Review
Perhaps most importantly, all of this can be done in real time. A talk with Lasco can help you determine what specific tools you need, and we can develop a product that is suited to you.
The nature of the landscape, and the speed with which check schemes are evolving, protecting against fraud is a continuous process. But every tool can make you that much safer. Think of each fraud tool as a piece of Swiss cheese. Each slice has its holes but the more slices you put on top of each other, the more holes you close. Lasco wants to help you close as many of those holes as possible.
Please feel free to reach out to the team at Lasco to further discuss how we can help you protect your financial institution from all types of fraud. Call 906-228-9720 or 800-800-6197, email bank@lascoinc.com, or submit a request for a consult right here on our website.