Attempted Check Fraud Spiked 43 Pct. In Two Years
The times that the fraud was successful make up $1.3 billion, or 47 percent of fraud losses in banks. That’s up from $789 million in 2016. Debit card fraud totals 44 percent of losses, or $1.2 billion.
“It has been the fastest-growing fraud at our bank,” said David Frady, an executive vice president at Gulfport, Miss.-based Hancock Whitney Bank.
While the fraud is bad for banks, it does provide an opportunity for banks to educate on other ways of processing payments.
Checks are easier to commit fraud with because they have a lot of information on them, they can be forged or even stolen. They’re still the most popular form of payments between businesses, according to a survey of treasury and finance professionals by the Association for Finance Professionals.
This is why companies see the benefits of check guarantee services.
A lot of companies keep using checks because it takes a lot of resources for systems to process payments electronically, and it’s not easy to convince other partners in business to start using electronic payments either.
Currently, about 33 percent of its disbursements every month are settled by check.