Academic journal article ABA Banking Journal

Deposit Account Fraud Report Available

Academic journal article ABA Banking Journal

Deposit Account Fraud Report Available

Article excerpt

Attempted check fraud at the nation's banks rose to $5.5 billion in 2003, according to the Latest ABA Deposit Account Fraud Survey Report.

While attempted check fraud continued to rise, actual dollar losses remained relatively stable at $677 million, down slightly from the $698 million that banks lost in 2001, the last year of ABA's biennial survey. Banks' check fraud prevention systems were credited with keeping actual losses significantly tower than the attempted fraud numbers. Attempted fraud totaled $4.3 billion in 2001.

While dollar losses decreased, the number of check fraud cases increased 3% to 616,469 cases in 2003. However, average tosses per case went down from $1,163 in 2001 to $1,098 in 2003. Counterfeit checks had the highest median toss per case at $3,059 followed by kiting ($2,566) and alterations ($1,452). With all types of fraud combined, the median loss per case varied from $530 for community banks to $1,380 for mid-sized banks, $2,242 for regional banks and $1,821 for the largest institutions.

Regardless of bank size, the most common type of check fraud in2003 was forgery, with about one-third of fraud losses attributed to forged signatures (24%) and endorsements (7%). Insufficient funds, or bounced checks that customers never pay, ranked second (17%) and counterfeit checks ranked third (15%). …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.