Article: Bad Checks Hit Small Banks.(American Bankers Association reports check fraud losses)(Brief Article)(Statistical Data Included)

Bank losses from check fraud continue to rise, especially at community and smaller regional banks.

The overall rise was 32% from 1997 to 1999, according to the American Bankers Association's every-other-year deposit account fraud survey. But the figure was 35% at community banks -- defined as those with less than $500 million of assets -- and 46% at banks with more than $500 million but less than $50 billion.

In contrast, check fraud losses at banks with assets of $50 billion or more increased only 27%. Nearly 600 banks, including 446 community banks, responded to the survey, which was released Thursday.

Nessa Feddis, senior federal counsel for ...

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