Is Debit Card Fraud a More Significant Problem Than Check Fraud?
Cross-posted from Bank Fraud Forum by Shirley Iscoe According to the 2009 ABA Deposit Account Fraud Survey Report, debit card losses totaled $788 million in 2008, compared to $1.024 billion lost to check fraud. On the surface, clearly check fraud is a larger problem. Surprisingly, however, more banks reported experiencing debit card fraud losses than check fraud losses. While 92% of survey participants reported experiencing debit card fraud, only 80% of banks reported experiencing check fraud losses. Due to the significant increase in debit card fraud, this is an area banks must not become complacent about, particularly with point of sale transactions. When a merchant accepts a counterfeit check at the point of sale, the paying bank has a defined time period to analyze the transaction, looking for unauthorized or fraudulent activity. When that same merchant accepts a debit card at point of sale, and obtains authorization from the issuing bank for the transaction, the bank will most lik
