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American Bankers Association.

Attempted check fraud at U.S. banks rose to $5.5 billion in 2003, according to the latest report from the American Bankers Association (ABA). The good news is that while attempted fraud continued to rise, actual dollar losses were slightly lower than in 2001, the date of the previous biennial Deposit Account Fraud Survey; losses fell from $698 million to $677 million.

The largest category of check-fraud losses (about one-third) was forgery, followed by bounced checks and counterfeit checks. New-account fraud was especially serious in community banks, but it affected banks of all sizes.

Account-screening software was ranked as the most effective fraud-prevention method by survey participants. Other valuable strategies were using credit bureau scores at account opening, not cashing checks for noncustomers, and implementing a centralized fraud management system.

The 120-page report is available from the ABA at a price of $150 for ABA members and $450 for nonmembers.
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Title Annotation:BUSINESS NEWS
Publication:Security Management
Date:Mar 1, 2005
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