There were big calls to remove the paper check system. But despite many financial instabilities, this method stood the test of time. It is still very popular for mass disbursement. Fraudsters love this mobile check method as it helps them drive their households.
Mobile check fraud is thriving under our noses. Some banking tools even assist fraudsters in this case. This fraud is also doubling every two years. This is a grave concern for the concerned people. The real cause behind this is the shift to the online world. Fraudsters are free to steal their data lying open in the online world.
If you look around yourself, you feel that physical checks are extinct. But they are still among the favorites. They amount to billions of dollars of transactions between companies and consumers. This has also gone further change with time. Now, we have remote deposit capture.
This only increases complexity for both the users and the bank. This is a more helpful situation for fraudsters and organized systems. Not only is mobile check increasing fraud but bringing in new ideas for it as well. There should be a way to control it.
The mobile check and remote capture are two different methods. Banks believe they hold money for different periods for both of these. The procedure for clearing or depositing money is also different sometimes. Because of this, banks feel that they are fraud safe. But they are not. Fraudsters do their work, and it gets late when banks notice it.
The fraud is also complemented by the different quality checks. They are fake checks, stolen, and counterfeit checks. The frauds happen in safeguarded banking spaces with these cheques. The problem is quite real. Many organizations are trying to solve it as well.
The goal is to stop being reactive to these frauds. The fraudsters are like chameleons. They change their color as per the situations they are in. The banks should go one step ahead and stop them. The banks should also stop the flow of fake checks in the system.
