| In this article we're going to cover check fraud. Check | | | | It is estimated that more than 2.2 million bad checks |
| fraud is the copying and/or duplicating of checks, | | | | enter the system each day and they expect this |
| usually using desktop publishing programs, for the | | | | number to increase anywhere from 2 to 4 percent |
| purpose of purchasing goods or services using | | | | over the coming years. This is a staggering figure |
| someone else's account. The victims of this fraud | | | | when you project this out over the course of a year. |
| include financial institutions, businesses who still accept | | | | On the average, banks charge about $20 per each |
| checks and the consumer himself who has had his | | | | bad check to the person who issued the check and |
| checking account compromised. In most cases the | | | | $5 per check to the person who deposited the check. |
| crimes begin with the theft of the document. This is as | | | | Of course in many cases of stolen checks, the person |
| easy to do as somebody breaking into your home and | | | | being charged back doesn't even realize a purchase |
| stealing a blank check or even going through your | | | | had been made. |
| garbage to steal an old canceled check. After that, it is | | | | According to the American Collectors Association, |
| a simple matter to forge your bank account number to | | | | Americans write about 1.7 million bad checks each day |
| go with a new ID. While it doesn't make up the | | | | totaling more than $50 million in bad check losses. This |
| majority of financial fraud, now that we have credit | | | | is the largest figure world wide and it is growing daily. |
| cards and online shopping, it is still a problem that | | | | As to the checks that are stolen or forged, the |
| accounts for a great amount of money each year. | | | | number of these that are written each year comes |
| How much? Let's take a look at some statistics. | | | | out to about 500 million checks and over $10 billion in |
| In one year merchants take in over $13 billion dollars in | | | | lost revenue. Check fraud in itself is expected to grow |
| bad checks. Each year shows an increase of about 18 | | | | at a rate of about 2.5% each year according to the |
| percent. This number is still expected to grow in spite | | | | current trend. |
| of the fact that more and more purchases are made | | | | The average number of fraudulent checks written |
| online or with credit cards. | | | | daily is about 1.4 million which comes out to about $27.3 |
| It is estimated that 75% of the vendors use third party | | | | million worth of fraudulent checks written everyday. |
| verification services. This makes it more likely that bad | | | | According to the National Check Fraud Center, check |
| checks are going to get through as opposed to | | | | fraud and counterfeiting are the largest and fastest |
| vendors who use manual approval methods or some | | | | growing problem that the United States financial |
| in house system. Unfortunately, it is cheaper to go with | | | | system now faces. The estimated losses produced |
| a third party service and that is why most vendors do | | | | annually are over $10 billion and is expected to rise |
| so. | | | | substantially over the coming years. |