Fraud Management & Cybercrime , Video

Check Fraud: What Hurdles Are Facing Banks?

Georgia State's David Maimon on Why Banks Have Not Been Able to Tackle Check Fraud
David Maimon, professor, Department of Criminal Justice and Criminology, Georgia State University

Banks are losing hundreds of millions of dollars a year to check fraud - if not more, says David Maimon, professor of criminal justice and criminology at Georgia State University. The major hurdle facing banks is that they are not able to share information with each other about fraudulent checks.

"Banks cannot really share information amongst each other with respect to stolen checks, the identity of individuals, and that is a big issue," says Maimon. He says the volume of fraudulent checks has increased dramatically over the past two years. "There is no depository where banks can go to figure out whether a check is stolen or not or whether an identity is stolen or not."

Check fraud can be used to steal money from individuals or businesses, open fake bank accounts or apply for credit loans, he says, adding that cybercriminals are now offering tutorials on check fraud washing and money-back guarantees if bad checks don't clear.

In this video interview with Information Security Media Group, Maimon discusses:

  • The reasons for the massive rise in check fraud;
  • The way check fraud has spilled into social media;
  • How banks need to improve check fraud detection.

Maimon, a full professor of criminal justice and criminology at Georgia State University, also serves as director of the university's Evidence-Based Cybersecurity Research Group.

About the Author

Suparna Goswami

Suparna Goswami

Associate Editor, ISMG

Goswami has more than 10 years of experience in the field of journalism. She has covered a variety of beats including global macro economy, fintech, startups and other business trends. Before joining ISMG, she contributed for Forbes Asia, where she wrote about the Indian startup ecosystem. She has also worked with UK-based International Finance Magazine and leading Indian newspapers, such as DNA and Times of India.

Around the Network

Our website uses cookies. Cookies enable us to provide the best experience possible and help us understand how visitors use our website. By browsing, you agree to our use of cookies.