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