News
The latest company news, industry trends, and relevant articles.
Federal Reserve Payments Study (FRPS) - March 2025
ACH, Checks, Wires, and Alternative Payments.
Data included in this release is from the DFIPS, which include a consistent set of large depository institutions and a representative sample of smaller institutions.
We Can’t Give Up Paper Checks, and That’s a Gold Mine for Scammers
Americans can’t quit paper checks. Fraudsters are cashing in. A message appeared this month on an app where people often congregate to trade tips on committing check fraud. It named some of the largest banks: “TD. PNC. CITI. NOWWWWW.”
Federal Reserve Financial Services Financial Institution Risk Officer Survey (2023)
In 2023, like 2022, external fraud remained the top operational risk. Survey responders cited concerns with increased fraud with check, card and non-bank apps, as well as increasing mule activity. Largest year-over-year increase in financial institutions (FIs) experiencing losses
were in check, followed by credit card.
Check Fraud Running Rampant in 2023
Report finds that deposit volume increased by 2.6% year-over-year from 2021 to 2022, while at the same time fraud volume has increased by 62%, meaning there was a 58% increase in fraud rate from 2.09 BPS in 2021 to 3.31 BPS in 2022.
Mobile deposits carry higher fraud risk
Some estimates indicate that processing traditional paper checks can cost anywhere from $4 to $20 per transaction in hidden fees.
Nasdaq: Global Financial Crime Report
Nasdaq reports that check fraud losses in the Americas totaled $21 billion in 2023 and represented nearly 80% of total check fraud losses globally, underscoring the growing problem of check fraud in the U.S.
Back with a vengeance: The challenges of check fraud
Financial Crime Enforcement Network reports over 680,000 Suspicious Activity Reports of potential check fraud in 2022, up from 350,000 in 2021
Banks on High Alert as Check Fraud Threatens New Deposits
Frank McKenna, chief fraud strategist at Point Predictive, estimates that check fraud will reach at least $24 billion or more in 2023, up 50% from 2018’s levels.
Cases of check fraud escalate dramatically, with Americans warned not to mail checks if possible
Americans wrote roughly 3.4 billion checks in 2022, in the average amount of $2,652.
Western And Lake Check Cashers LLC v Propane Pete LLC
2023 Illinois Court of Appeals opinion holds that check cashing service is “holder in due course” of check that had previously been deposited through mobile app, making drawer of check liable for payment twice.
Banks Beware: Mobile Checking and the Rise of Duplicate Presentment
UCC Law Journal article outlines the limitations of existing legal structures to address check fraud in the digital age and why a technological solution is necessary.
Check Deposit Fraud Increased 385% in 2022
Benchmarking data collected by Auriemma Roundtables finds that check fraud increased by 385% in 2022.