BOSTON-Strong check endorsement policies go a long way toward fighting mobile check deposit fraud, but sources are uncertain whether banks and credit unions have focused their full attention in this area.
Bob Meara, senior analyst at Celent, a division of Oliver Wyman, explained that it is common for mobile RDC technology to detect whether the back of a check is endorsed (but it does not authenticate signatures), giving the FI a solid tool to detect check fraud. "The financial institution should have specific endorsement criteria, and explain to customers how a check deposited via a mobile device should be signed on the back. For example, 'for deposit only,' along with the account number."
That policy not only helps the bank or credit union detect when a check is not signed appropriately and raises a red flag, it also makes it more difficult for a fraudster to present a bogus check to another institution, he said.
John Leekley, founder and CEO of RemoteDepositCapture.com, Alpharetta, Ga., observed that much of the mobile check deposit fraud prevention is common sense risk management, which includes assessing/profiling the customer or member.
"This is a crime that should not happen over and over again from the same individual, and it is preventable, whether the fraud is attempted at a bank or a check cashing facility. Let's say someone deposits a check at a financial institution and then goes to a check casher and that check casher is victimized. You think that check casher welcomes the person back again? The check casher, too, is not likely to take a large-dollar check from someone they don't know who walks in off the street."
