Is Your Check 21 Implementation a Fraud Hazard?
- Topics:
- Commercial Banking
- Source:
- Unisys
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Overview: The implementation of the Check Clearing for the 21st Century Act (?Check 21?) in the U.S. means that check-handling and collection will experience a drastic increase in speed, but it also portends other seismic issues in the financial services industry - some that are especially foreboding. First, converting paper checks to digital image has the unintended consequence of significantly reducing the bank?s recourse to fraud. Because the image-processing procedure typically involves the destruction of the paper document, eliminating the very evidence of fraud, it could make it extremely difficult to prosecute check-fraud crimes in the future. In this collaborative white paper, three fraud experts from the financial services industry discuss the convergence of Check 21, phishing and account takeover scams. They describe the emerging risks, and share their perspectives on possible approaches for banks to adopt to protect themselves - and their customers - against a potential new wave of fraud.
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Format: PDF | Size: 468KB | Date: Aug 2004 | Pages: 8
