tech topics | identity theft
SPECIAL INVESTIGATIVE REPORT
ID theft risk: checks
Vulnerabilities in the check ordering/printing business create big opportunities for criminals by dan fisher, contributing editor
he risk of identity theft is increasing daily and the exploitation of technology by criminal minds plays a central role in this growing epidemic. Whether it’s remote deposit or a small-business customer using a funds-transfer application from his desktop or mobile phone, technology fundamentally has replaced traditional face-toface interaction at the branch and the relationship-based safeguards that have been used in the past. Loan applications, deposit accounts, and investments, just to mention a few, are fully internet enabled. Criminals know this and they can use technology to establish multiple relationships with multiple financial institutions. And if they possess stolen but correct financial information, they can wreak havoc.
Getting to Know Your Customer is no longer just a relationship-building experience that occurs over time. It is also one of your first lines of defense in a very dangerous world. As we’ll show in this special investigative report, even the most mundane of banking activities—check ordering—can create huge new risks by virtue of supply chain changes facilitated by technology. Obtaining checks is all too easy Even though check volume is declining, the risk associated with checks and remote deposit is increasing. The Copper River Group conducted a limited research project focused on checks and the many ways they can be produced outside
may 2011 | ABA BANKING JOURNAL |
Table of Contents for the Digital Edition of ABA Banking Journal - May 2011