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Tuesday Topic: Check Fraud Is Everywhere

Tuesday Topic: Check Fraud Is Everywhere
Jul 15, 2025 4:18:18 PM
Rob and everyone.

The industry should consider requiring customers to use Positive Pay.

Most signature card agreements allow that if a bank offers account protections (such as Positive Pay, alerts) and the customer chooses not to avail themselves of the services the loss (risk) shifts to the customer.

An industry approach is needed so that customers can avoid these security measures by going to a bank that doesn't require these services to be used.

Most Sincerely

Leton Harding

 

"The information contained in this email is confidential and may contain proprietary and/or personal information. It is meant solely for the intended recipient. Access to this email by anyone other than the intended recipient is unauthorized. If you are not the intended recipient, any processing of the email or the information contained therein (including disclosure, copying, distribution, storage) or any action taken or omitted in reliance on this, is prohibited and may be unlawful. No liability or responsibility is accepted if information or data is, for whatever reason corrupted or does not reach its intended recipient. No warranty is given that this email is free of viruses. The views expressed in this email are, unless otherwise stated, those of the author and not those of Powell Valley National Bank or its management. Powell Valley National Bank reserves the right to monitor, intercept and block emails addressed to its users or take any other action in accordance with its email use policy."


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Original Message:
Sent: 7/29/2024 3:58:00 PM
From: Rob Blackwell
Subject: Tuesday Topic: Check Fraud Is Everywhere

Ninety percent of CEOs, presidents, CFOs, and COOs who responded to IntraFi's most recent Bank Executive Business Outlook survey reported an increase in check fraud, and nearly a quarter said check fraud had risen by more than 50%. Some execs are calling for more action from the government; three out of five respondents said they want the liability to shift to the bank of first deposit, where bad actors open accounts to facilitate their schemes.  

Be sure to catch our recent episode of Banking with Interest with Frank Abagnale, Jr., an expert on check forgery and a former fraudster, to learn why check fraud is so easy to commit and what your bank can do about it.

Has check fraud been a problem at your institution? What are some tactics you've employed to help deter it? Have they been effective? Have any technology solutions worked in particular?



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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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1 Comment
Jul 30, 2024 8:00:00 PM
All,

The standard signature card we have used for years has the provision which allows Positive Pay requirement. This is a Wolters Kluwer form and I recall at my former Bank that Bankers Systems signature cards had the same provision,

We have cleared with legal counsel that this is a viable option in Virginia.

Our plan would be to provide the client a written notice and have them select in or out for Positive Pay with clear disclosure that if the client chooses not to avail themselves of the Positive Pay system the liability shifts to the client / customer.

A concern I have is that is if we (alone) impose this standard other banks seeking deposits may want to accept the risk of banking the customer without the risk protection of Positive Pay.

Leton Harding

 

"The information contained in this email is confidential and may contain proprietary and/or personal information. It is meant solely for the intended recipient. Access to this email by anyone other than the intended recipient is unauthorized. If you are not the intended recipient, any processing of the email or the information contained therein (including disclosure, copying, distribution, storage) or any action taken or omitted in reliance on this, is prohibited and may be unlawful. No liability or responsibility is accepted if information or data is, for whatever reason corrupted or does not reach its intended recipient. No warranty is given that this email is free of viruses. The views expressed in this email are, unless otherwise stated, those of the author and not those of Powell Valley National Bank or its management. Powell Valley National Bank reserves the right to monitor, intercept and block emails addressed to its users or take any other action in accordance with its email use policy."


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Original Message:
Sent: 7/31/2024 9:10:00 AM
From: Randy Bono
Subject: RE: Tuesday Topic: Check Fraud Is Everywhere

Our attorney advises us that Missouri law does not allow us to force the liability back on the customer if they choose not to use Positive Pay.  Also, if they do not approve the incoming check file, aren't we forced to process it anyway albeit with higher scrutiny if they haven't looked at it?  



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Randy Bono
CFO
FCNB Bank
Steelville, MO
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Original Message:
Sent: 07-30-2024 09:29
From: Leton Harding
Subject: Tuesday Topic: Check Fraud Is Everywhere

Rob and everyone.

The industry should consider requiring customers to use Positive Pay.

Most signature card agreements allow that if a bank offers account protections (such as Positive Pay, alerts) and the customer chooses not to avail themselves of the services the loss (risk) shifts to the customer.

An industry approach is needed so that customers can avoid these security measures by going to a bank that doesn't require these services to be used.

Most Sincerely

Leton Harding

 

"The information contained in this email is confidential and may contain proprietary and/or personal information. It is meant solely for the intended recipient. Access to this email by anyone other than the intended recipient is unauthorized. If you are not the intended recipient, any processing of the email or the information contained therein (including disclosure, copying, distribution, storage) or any action taken or omitted in reliance on this, is prohibited and may be unlawful. No liability or responsibility is accepted if information or data is, for whatever reason corrupted or does not reach its intended recipient. No warranty is given that this email is free of viruses. The views expressed in this email are, unless otherwise stated, those of the author and not those of Powell Valley National Bank or its management. Powell Valley National Bank reserves the right to monitor, intercept and block emails addressed to its users or take any other action in accordance with its email use policy."



Original Message:
Sent: 7/29/2024 3:58:00 PM
From: Rob Blackwell
Subject: Tuesday Topic: Check Fraud Is Everywhere

Ninety percent of CEOs, presidents, CFOs, and COOs who responded to IntraFi's most recent Bank Executive Business Outlook survey reported an increase in check fraud, and nearly a quarter said check fraud had risen by more than 50%. Some execs are calling for more action from the government; three out of five respondents said they want the liability to shift to the bank of first deposit, where bad actors open accounts to facilitate their schemes.  

Be sure to catch our recent episode of Banking with Interest with Frank Abagnale, Jr., an expert on check forgery and a former fraudster, to learn why check fraud is so easy to commit and what your bank can do about it.

Has check fraud been a problem at your institution? What are some tactics you've employed to help deter it? Have they been effective? Have any technology solutions worked in particular?



------------------------------
Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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