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Cheque Fraud Articles

Check Fraud: Minimize Your Exposure

Crime: Forgotten Fraud: Counterfeit Cheques

Separating Money from Worthless Paper

Crime: Forgotten Fraud: Counterfeit Cheques

 

Banks lost $698 million from scams in 2001 only a few decades ago, fooling a bank into cashing a counterfeit check required forgery skills, a nomadic attitude and steady confidence. Modern technology, however, has since lowered the bar. "It's probably about 2,000 times easier today than it was 30 years ago," says Frank Abagnale, a banking industry consultant whose youth as a master check forger in the 1960s was depicted in the 2002 movie, "Catch Me If You Can." In the past, a criminal needed a warehouse-sized machine to create realistic bank checks. "Today we can sit in a hotel room with a laptop, a scanner and printer," he says. "We can fabricate a check and make it even more beautiful than the bank's." Abagnale travels the country as a consultant for Nashville's Progeny Marketing Innovations, warning banks about the ingenuity and tenacity of fraudsters. The American Bankers Association says that criminals attempted more than $4.3 billion in deposit-account fraud in 2001, a year banks lost $698 million. The number of attempts has doubled every two years since 1997. (Read more...)

 

Separating Money from Worthless Paper

 

Despite the heavy use of credit cards and online payments, and the redoubled efforts of the FBI and police anti-fraud units, check fraud continues to increase. CFEs can benefit from reviewing the rudiments of check fraud detection and prevention, and the new twists. (Read more...)

 

Check Fraud: Minimize Your Exposure

 

Check fraud continues to rise at alarming rates. According to the American Bankers Association (ABA) Deposit Account Fraud Survey, attempted check fraud surpassed $4.3 billion in 2001, with actual losses equaling $698 million. Every employer may be a potential target to be defrauded at some point, even if preventive measures are being taken.

 

Criminals today have a number of tools to aid them in committing check fraud. Sophisticated new technology, including computers, color copiers, and scanners, can easily be used to forge or counterfeit checks or alter payee names and amounts. To the untrained eye, these checks appear genuine and are often considered valid and cashed. Criminals will also go to great lengths to obtain personal or corporate financial information such as account numbers and check styles that make counterfeiting a simpler task. Some common methods include stealing checks, or working with bank insiders or dishonest employees of check cashing merchants who are willing to provide this confidential information. In most cases, by the time the criminal act is detected, the criminal(s) involved is long gone. (Read more...)