SCOTTSDALE, Ariz.-While check usage may be on the decline, the amount of charge-offs due to check fraud is not, and one person says that Reg CC remains a chief compliance hurdle.
Mobile has given checks "a bit of a revival where people want to use it more and are becoming more aware of it because of the new tech that's out there," said Rose Corvo, SVP, financial services, mid-market at fraud prevention firm Early Warning. "The biggest challenge I get asked probably every other day is around mobile banking and how do I open up my limits on there ... (and) how do I apply holds appropriately to those checks coming through that channel? How do I get away from the counterfeit and fraud issue?"
Corvo stressed the importance not only of internal policies and procedures, but also selecting the right vendor partners.
"When they end up selecting a mobile app-type company, my advice would be to make sure that it is a fairly tried and tested mobile app technology that allows them to set how many times you can snap the check, because there is a lot of 'noise' in the system," she said. Corvo noted that CUs may have to determine whether a check has been deposited multiple times because of intentional fraud or just because of the "stupidity factor" and learning curves associated with mobile RDC.
