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Image: BankofAmerica.com

Can who cash her check an ext than once? Yes, thanks to the intersection of an extremely old and also very brand-new banking technology. Impossible until freshly – payees formerly were forced to hand record checks over to banks during a deposit – some specialists predict “double presentment” will certainly be the resource of a brand-new fraud tide coming soon. And if you don’t know around it, also if girlfriend don’t usage mobile banking, you can have come foot the bill.

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It taken place to Louise Moon Rosales of Vermont. Double in the past year, she wrote checks to salary for small services such together yard work. Both were cashed…and climate cashed a second time a couple of months later. Her financial institution honored both payments. For example: a $100 inspect she composed to a high college student because that yard work was cashed in December, and then again in April. How?

The student used a new, renowned checking account tool dubbed “remote deposit capture” — he deposited the inspect with his cell phone. Examine recipients who execute that acquire to save the paper check, fairly than hand it end to a teller or one ATM. That method the inspect can be deposited a 2nd time, a problem known in banking as “double presentment.”


“I completely could have missed it,” Rosales said. “If didn’t usage Quicken I would certainly have….I usage online Quicken come reconcile the accounts, and also that is just how I uncovered it.”

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It seems virtually too simple: criminals re-depositing the same examine multiple times. But with the meteoric rise of far deposit capture and also mobile banking– some experts think half of all retail deposits will make use of the modern technology by following year — financial institutions are gyeongju to complete with each other to sell the service. That method they are beginning to favor rate over safety.

And there’s an additional element which renders mobile bank ripe for the following wave the fraud, predicts analyst Shirley Inscoe that Aite Group. Through chipped “EMV” credit card chips finally ending up being a fact in the U.S., removed one famous kind that fraud, criminals will aggressively hop come another an approach to replace shed income.

“I predict that organized fraud rings – which will certainly be proactively looking for new targets as EMV becomes more totally implemented – will find (mobile remote deposit capture) in a huge way,” she said.


Spotting fraud takes time, and use of fraud-fighting modern technologies is always a tight balancing plot of convenience vs. Security. It appears logical that a financial institution would conveniently scan inspect numbers to make certain the precise same examine hasn’t to be deposited before, but for small dollar amounts, even that level of delay can be viewed as unnecessary. Still, banks have in history been good at catching double presentment at the exact same institution making use of the very same channel — the same inspect deposited twice utilizing the exact same mobile phone, for instance — states analyst Bob Meara the Celent.

But if criminals use different networks — very first time on a phone, second time at an ATM — that gets a little trickier.

And depositing the same examine into multiple various checking account at many banks? Well, it is a big problem.

“Even the many rigorous deposit evaluation mechanisms are powerless come identify and also reject items that have been formerly deposited at various other financial institutions,” Meara to write in a recent report.


Even the most rigorous deposit review mechanisms space powerless to identify and also reject items that have actually been previously deposited at other financial institutions.Part the the trouble involves ethical mistakes, i beg your pardon turned the end to it is in the source of Rosales’ trouble. One check was refunded by the bank, the other by the student. “Accidental dual presentment” occurs as soon as a consumer isn’t certain if she/he (or a spouse) formerly cashed a check. The problem is a brand-new one because that consumers, who aren’t used to hanging onto physical checks after they’ve been cashed. Some financial institutions tell consumers to organize on come the file for a month or more, leading to unavoidable confusion end what’s been cashed and what hasn’t.

Until recently, banks have been really judicious about granting remote deposit privileges to account holders, which has actually kept fraud rates really low. Tenure v the institution, deposit history, and average everyday balances have all dictated which consumer or businesses were granted mobile deposit eligibility. Financial institutions have likewise established low maximum day-to-day deposit limits, one more disincentive because that fraud. Meara claims fraud has been incredibly low.

“Indeed, financial institutions wish credit transaction card portfolios would carry out in together a well fashion,” he said. Cell phone deposit defense technologies are “light years ahead of what was when status quo: taking manual deposits at the branch.”

But v the new, very competitive environment, pressure to expropriate remote deposits native anyone…and for high deposit limits…has brought about lowering that standards, Inscoe said. That way more fraud, Inscoe warns.

“As I proceed talking with financial school execs, i am hear that much more and much more banks are dropping the requirement that one account be opened up for a specific period of time before being eligible because that MRDC as result of competitive pressures. Together that need is dropped, fraud is becoming quite a problem,” she said me. “At some point, the require for fraud relief may outweigh the compete pressures and also force banks to reinstate the new account ‘wait period’ before permitting customers to use MRDC.”

RED ice WRESTLING TIPS

Watch for checks cashed twice! Consumers must take heed of Rosales’ lesson. If she didn’t record the twin withdrawals, she would certainly be the end the money. Don’t rely on your bank’s department to record the problem.

Even if you don’t use mobile banking, you have the right to be a victim.

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It’s likewise incredibly essential to understand that you have the right to be a victim of dual presentment also if don’t usage online bank or cell phone banking. All the matters is the criminal/absent-minded payee supplies remote deposit capture. Every you have to do is create an old-fashioned examine to be victim or the recent banking fraud.