Isn there more risk of fraud with Direct Deposit?
An article released by the Institute of Management and Administration states, “One of the easiest ways to prevent check fraud is not to issue checks at all. The reason Direct Deposit is critical is often the checks that are forged are payroll checks.” And, check fraud is growing at alarming rates. The National Check Fraud Center reports that check fraud and counterfeiting are producing estimated annual losses of $10 billion. Using Direct Deposit prevents criminals from altering or counterfeiting payroll checks. It also reduces the risk of criminals obtaining your account number. In an article in the Journal of Accountancy, Joseph T. Wells, founder and chairman of the Association of Certified Fraud Examiners, states that Direct Deposit “can cut down payroll chicanery by eliminating paper paychecks and the possibility of alteration, forgery and most theft.
