Fraud in a Check 21 Environment

The Ongoing Value of Receiving an Early Warning

To date, much has been written on the direct and indirect benefits of Check 21 to financial institutions. While many have been quick to tout the potential upside of this legislation, no one as yet has sought to uncover how fraud will persist and evolve in this new environment.

As financial institutions begin developing their Check 21 business cases, many have been led to believe that upon becoming image-enabled, exposure to fraud losses will be greatly reduced or even eliminated. While there are numerous positive aspects to this legislation, those who subscribe to this assumption could find themselves vulnerable to a host of fraudulent schemes.

White Papers

• Examining Funds Availability, Returns and Fraud Since the Advent of ‘Check 21’* (PDF, 207kb) - December 05’
• Fraud in a Check 21 Environment* (PDF, 380kb) - September 04’

Frequently Asked Questions

• Fraud and Check 21

Other Resources

• Chicago Fed Letter - Implementing the Check 21 Act: Potential risks facing banks* (PDF, 49kb)
• Report to the Congress on the Check Clearing for the 21st Century Act of 2003* (PDF, 491kb) -
  April 07’

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