Fraud Management & Cybercrime , Fraud Risk Management , Video
Check Fraud: What Hurdles Are Facing Banks?
Georgia State's David Maimon on Why Banks Have Not Been Able to Tackle Check Fraud
Banks are losing hundreds of millions of dollars a year to check fraud - if not more, says David Maimon, professor of criminal justice and criminology at Georgia State University. The major hurdle facing banks is that they are not able to share information with each other about fraudulent checks.
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"Banks cannot really share information amongst each other with respect to stolen checks, the identity of individuals, and that is a big issue," says Maimon. He says the volume of fraudulent checks has increased dramatically over the past two years. "There is no depository where banks can go to figure out whether a check is stolen or not or whether an identity is stolen or not."
Check fraud can be used to steal money from individuals or businesses, open fake bank accounts or apply for credit loans, he says, adding that cybercriminals are now offering tutorials on check fraud washing and money-back guarantees if bad checks don't clear.
In this video interview with Information Security Media Group, Maimon discusses:
- The reasons for the massive rise in check fraud;
- The way check fraud has spilled into social media;
- How banks need to improve check fraud detection.
Maimon, a full professor of criminal justice and criminology at Georgia State University, also serves as director of the university's Evidence-Based Cybersecurity Research Group.
