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Article: New technologies to combat check fraud
- Article from:
- The CPA Journal
- Article date:
- March 1, 1999
- Author:
CopyrightCopyright New York State Society of Certified Public Accountants Mar 1999. Provided by ProQuest LLC. (Hide copyright information)
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Technology benefits both the capacity to perpetuate and the ability to detect or prevent fraud.
Banks have worked hard to wean customers away from paper checks. Checks are expensive to print, mail, and process. Nevertheless, bank customers continue to use them in record numbers. In fact, the volume of paper check transactions in the United States grew from $42.5 billion in 1980 to $56.8 billion in 1990 and is anticipated to grow to $67.7 billion by the year 2005, according to The Nilson Report, a financial services newsletter. The much heralded checkless banking system remains stubbornly in the future. Banks have discovered that many customers prefer paper checks to debit cards, automatic ...