As check fraud rises, dual-purpose cash and check scanners provide peace of mind
Although check use has declined, check fraud has remained just as prevalent, demonstrating the usefulness of dual-purpose cash and check scanners.
According to the 2015 Payments Fraud and Control Survey by the Association for Financial Professionals, 62 percent of companies were targets of some form of fraud. One method of fraud proved to be far more popular than the others: For the companies that experienced fraud, 77 percent of it was through checks. Even worse, check fraud tends to be the most costly to its victims, although the percentage of companies that incurred losses because of it had decreased from the previous year by 12 percent.
Why has check fraud thrived?
With the rise of the EMV (EuroPay, MasterCard and Visa) cards, confidence is high that credit card fraud will be reduced, the AFP reported. Ninety-two percent of finance professionals believe that these cards are an effective way to reduce fraud at point-of-sale terminals. In fact, credit and debit card fraud was reduced from 43 percent in 2013 to 34 percent in 2014. That's great news, but means that criminals will look to take advantage of companies with other methods as the EMV cards become widespread.
This might partly explain the consistent presence of check fraud around the world, Credit Union Insight reported. Mobile payments, CUI wrote, have contributed to the rise as well.
What can businesses do?
There are about a billion dollars, coming from businesses of all sizes, that is at stake, according to CUI. That is why it is essential that business owners take initiative. Making sure checks are securely mailed - especially during tax time when fraud is especially prevalent - and making sure bank statements are correct are just a few of the ways one can avoid check fraud. Investing in a reliable check scanner will also provide business owners with a heightened sense of financial security.