Check Fraud Numbers Continue to Climb, Says Recent Survey

Business Solutions: Information from the League's Business Partners Incidents of check fraud continue to climb, impacting eight in ten financial services organizations (FSOs) and accounting for more than $1 billion in losses. The trend was noted in the 2009 American Banker's Association Deposit Account Fraud Survey Report, which tracks fraud trends based on surveys and interviews with FSOs from across the country. According to the report, there were more than 760,000 check fraud cases in 2008. The number one cause of check fraud loss was returned deposited items, which accounted for 35 percent of total check-fraud losses. Counterfeit checks were the second highest cause of loss — accounting for another 30 percent. Forgeries, which accounted for 22 percent of losses, were the third most common check-fraud type. The most frequent account type to be victimized was individual checking accounts, which accounted for 74 percent of total check fraud losses. Small business accounts, middle-market and corporate accounts accounted for the other most frequently victimized account types. Posted in: Check Fraud