Banks are complacent about check fraud
Many banks are complacent about check fraud, perhaps because it's been around for so long. And yet, according to the 2012 Faces of Fraud survey, it remains the second-most common form of fraud institutions face.
Another reason for the complacency? Check fraud seems minor, relative to escalating fraud threats posed by emerging e-commerce channels. "Banks perceive the risk to be much higher in the electronic-payment channels," Tubin says. "With check fraud, they've been dealing with it forever, and they're used to it."
But the lines between old-school schemes such as check fraud, and emerging e-commerce scams are blurring. The advent of check images has married the check to the online channel. And financial institutions that continue to rely on manual processes to detect check fraud find themselves challenged by new cross-channel schemes.