Check fraud remains a problem for retailers and law enforcement, according to the Internet Crime Complaint Center, which pulls data from the FBI.
But as more checks are treated as electronic instruments, removing any lag time in processing, the opportunity for fraud decreases.
According to a January 2009 study, check fraud made up nearly 8 percent of all types of fraud, each with an average loss of about $3,000. That’s fourth-highest after nondelivery of items, auction fraud and confidence fraud, the ICCC report shows.
Moving away from checks could have unintended consequences, some consumer advocates say: Banks make more money on debit cards than on checks.
“Funny, it’s a felony to intentionally bounce a check, but the ATM debit card, if you misuse it, it’s merely a fee,” said Ira Rheingold, executive director of the National Association of Consumer Advocates.
“How many people actually use checks anymore?” he said. “But we’re concerned this will push people to use debit cards and have to pay large amounts of money for small purchases.”
David Migoya: 303-954-1506 or dmigoya@denverpost.com
