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Threat of the Week: Mobile Deposit Fraud Set to Cross the Line

Credit Union Times, By Robert McGarvey


Sides are being taken, lines are getting drawn over whether – or not – there has been an explosion in mobile remote deposit capture fraud.


The latest salvo in the fight: A survey of a couple hundred financial institutions (including 44 credit unions) by RemoteDepositCapture.com that found that 80% say they have suffered no losses due to MRDC. 


“Losses are extremely slim,” RemoteDepositCapture.com CEO John Leekley said in an interview.

On the other side of this divide is Citibank senior vice president Brian Todd who, at the April NACHA conference, said on a panel that Citi had been seeing substantial growth in MRDC fraud.


Todd suggested, although he offered few details, that knowledgeable criminals were exploiting time lags and loopholes in check clearing processes, in order to effect multiple deposits of the same check image across multiple accounts and institutions. He left the audience with the suggestion that MRDC fraud was just in its early stages, that more is sure to come. Read more.