Identity Theft: Check Fraud Making a Comeback
December 23, 2007
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An old form of Identity Theft is making a comeback. Prior to the rise of the internet, online commerce and phishing, Check Fraud was often chosen by Identity Thieves as a mean for tapping into unsuspecting consumers' bank accounts. Check Fraud involved stealing or replicating a victim's check, forging the victim's signature, and providing a fake identification card if needed. Merchants became hesitant about accepting checks, and banks started issuing "Check Cards", a bank issued identification card required for cashing or writing checks.
With the ultimate rise of the credit card, the internet, and online commerce, Identity Thieves shifted their focus to online Identity Theft. Such new medium provided Identity Thieves bigger rewards, better cover, and easier mode of operation.
As consumers are becoming better educated about online Identity Theft, and credit card companies are initiating better security and protection measures, it seems Check Fraud is making a comeback. New printing technology, and sophisticated mail theft schemes are luring Identity Thieves into their old methods...
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In an article published by the San Francisco Chronicle on December 22, 2007, "Holiday shoppers warned to take extra precautions against thieves", Doborah Gage writes: " Foley said check fraud is increasing because credit card companies are making it harder to get credit without authentication. And she said counterfeit checks are not that hard to create - thieves can make checks with paper bought at an office supply store. They may combine your name with a different account number, or make up an account number you never had. They also are creating fake payroll checks."
Check Fraud was very well documented in the 2002 Steven Spielberg movie starring Leonardo DiCaprio and Tom Hanks: "Catch Me If You Can." Such movie depicted a book by Frank Abagnale Jr. , illustrating his true history as an Identity Thief, who committed Identity Theft through Check Fraud, to the tune of Millions of dollars. Before even reaching the age of 19, Mr. Abagnale masqueraded as a Pan American Airlines pilot, legal prosecutor, doctor, and others, enabling him to amass wealth beyond his own imagination.
Many new identity theft tools, such as Fraud Alerts, Credit Freeze / Credit Lock, Credit Monitoring, Free Annual Credit Report, Pre-Screen Optout, and National Do Not Call Registry are undoubtedly invaluable in the fight against Identity Theft. However, when it comes to Check Fraud, consumers need additional tools. Consumers need to monitor their bank accounts, preferably on a daily basis. Any suspicious check activity needs to be reported immediately. When ordering a new check book, make sure it is delivered safely; if you do not receive it within the expected delivery time, immediately contact your bank and ask for advice.
It would be expected that additional security measures in the fight against Check Fraud will be enacted in the years to come.For example, when you order a new credit card, upon receiving such card, you need to contact a specific number in order to authenticate the card before you can use it. Similarly, a procedure should be put in place, requiring your authentication prior to allowing new checks to be used. |
As chip and paper technology gets cheaper, it is possible that in the future, a micro chip will be embedded in every check, re-enforcing authentication procedures such as the requirement for a PIN or other. Similarly, it is possible that upon the presenting of a check, a consumer is immediately contacted to a pre-specified contact number, such as a cell phone, requiring authentication before the check is accepted by the merchant. In the meantime, and until such new technologies and procedures are enacted, consumers need to keep a very close eye on their checking account. Consumers also need to employ appropriate Identity Theft Protection measures for other forms of Identity Theft, such as Credit Monitoring, Fraud Alerts, Credit Lock / Credit Freeze, Pre-Screen Optout, National Do Not Call List, Free Annual Credit Report, Shredding, Mail Box Locking, Anti-Phishing Software and measures, etc... Email Article |
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