FDIC’s Top Five Fraud Threats Show Counterfeit Checks Still a Worry

The chief of the Federal Deposit Insurance Corporation’s Cyber Fraud and Financial Crimes Section recently released his top five list of fraud threats of concern to the FDIC: 1. Malware and Botnets; 2. Phishing; 3. Data Breaches; 4. Counterfeit Checks; 5. Mortgage Fraud. Malware and Botnets are software agents or robots that take over a user’s computer are often the root causes of commercial payments fraud, i.e. corporate account takeover. Phishing has evolved from badly-written, bogus e-mails to well-crafted assaults via e-mail, telephone and text message. While most data breaches have occurred on the merchant and payments processor sides of the business, financial institutions are still deeply impacted by these losses. Although circulation of fake checks continues to drop, counterfeit check fraud remains prevalent. Mortgage fraud crimes committed against financial institutions, as well as mortgage rescue scams that affect consumers and mortgage holders, continue to plague the financial market.