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