Check Fraud 101: Secure Your Money in Mobile Banking

Mobile deposit offers members the convenience of depositing checks into their bank accounts without the need to visit a branch. Members can now take a photo of their check on their smartphone and send that image to their financial institution to be deposited in a matter of seconds. While this technology offers a wider range of banking accessibility, it can harbor a host of fraudulent activity. This article serves as a tool to learn proper mobile deposit security and gain check fraud awareness from our trusted risk management experts.

Verify the Source 

Be wary of accepting checks from unfamiliar individuals or businesses. For example, fraudsters will alter legitimate checks, changing the payee’s name, the amount or other critical details. They then deposit the altered checks and withdraw the funds before detection. If the source seems suspicious or the check appears questionable, contact the issuer or the bank to verify its authenticity.

Inspect Checks Carefully 

Scan any checks you receive for signs of tampering or irregularities. For instance, fraudsters create counterfeit checks using sophisticated printing technology to mimic legitimate checks. They then use mobile depositing to deceive banks and gain access to members’ funds. Our item processor tells us, “When we come across suspicious checks, we run them through our check exposure system. We usually find that these checks have been created on someone’s personal computer.” While it’s unrealistic to expect the average person to spot a highly advanced check scheme, there are some key details you can look out for. Pay attention to the paper quality, font consistency and any additional markings left on the check.

Safeguard Personal Information 

Don’t share your personal or financial information with questionable sources. Refrain from sharing information like bank account numbers, and Social Security numbers, via email or text messages. Our fraud investigator states, “We are getting calls from members saying that our representatives are asking for their mobile banking PIN and/or Social Security number. If we are in need of sensitive, personal information like a Social Security number, for example, we’d ask you to visit a branch.” If you are unsure whether you are talking with a representative from your financial institution, find their direct line on their website and begin your banking process from there.

Educate Yourself

Stay informed about the latest trends and techniques used in check fraud. Check in with your financial institution on methods you can use to boost your security practices. A representative in risk management shares, “It's important that our members ask themselves some key questions before cashing these checks. Why would they send me money? Why are they using this method of payment? Why do they need this information from me? These questions may be the only thing standing between your money and a banking scam.”

Report Suspicious Activity

If you notice any unusual or suspicious transactions in your bank account, report them to your financial institution immediately. This can help prevent further fraudulent activity. Remember, a combination of technological advancements and responsible user behavior is the key to staying one step ahead of scheming fraudsters. Staying vigilant and taking appropriate security measures are the best methods to safeguard your financial transactions and ensure a secure mobile deposit experience.