Fraudulent Check Response Service


Published on

The cost of check fraud is not limited to direct losses. The negative impacts of fraud attacks on the public image and reputation of a victim organization are difficult to gauge, and even harder to control. How many customers are you putting at risk?

Published in: Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • 1 Annual Report of Investigations of the United States Postal Inspection Service, FY 2007, January 2008, Page 26.2 National Consumers League Annual Ranking of Top Telemarketing and Internet Scams, 2010, January 21, 2011.3 The 2010 Federal Reserve Payments Study, Noncash Payment Trends in the US: 2006 – 2009, Research Sponsored by the Federal Reserve System, Released April 5, 2011, Page 29.4Ibid., Page 34.
  • Alliance for Consumer Fraud Awareness, Scam Benchmark Survey Topline Report, Authored by Jason Booms of Booms Research and Consulting. (
  • 1 The Economist Intelligence Unit, Reputation: Risk of Risks, An Economist Intelligence Unit White Paper Sponsored by Ace, Cisco Systems, Deutsche Bank, IBM and KPMG, December 2005, Page 2.2 Ibid.,Page 9.3 Ibid., Page 5.4 The Importance of Reputation, AnsiVallens, Risk Management Society Publishing, April 2008, Page 4.
  • Note that while these incidents may or may not have used additional messaging channels for issuing these consumer alerts, they all had highly visible web-based notifications…SC JohnsonCouncil of American Survey Research Organizations (CASRO)H. J. Heinz Company
  • “We don’t blame the victim. We know these crooks are very convincing and very good at what they do. We warn consumers that fraud can happen to anyone. We hear from lawyers, doctors, people with advanced degrees. Men, women, young, and old. We’ve logged complaints from victims as young as 18 and as mature as 94. No one is immune from scams.” (Sally Greenberg, Executive Director of National Consumers League)
  • Corporate Social Responsibility (CSR)
  • Fraudulent Check Response Service

    1. 1. Fraudulent Check Response Service<br />tools for corporate reputational risk management<br />
    2. 2. A criminal forwards consumer a fraudulent check and requests that some of those funds be returned to them<br />The victim deposits the fraudulent check in their bank account and waits for these funds to become available<br />Once the deposit appears in their account balances the victim assumes the check has cleared and they comply with the criminal’s request by transferring their funds<br />At some point the victim’s bank receives unpaid check from drawee bank, and looks to victim to return funds<br />What is a Fraudulent Check Scheme?<br />
    3. 3. From January to August of 2007, US Postal Inspectors seized over 540k counterfeit checks and money orders originating overseas with value in excess of $ 2.1 BN1<br />The fraudulent check scheme continues to be the most frequently reported scam plaguing consumer in 2010 2<br />The value associated with all checks deposited totaled $37.5 trillion in 2009, with an average value of $1,226 per deposited check - average value unpaid at $1,0013<br />Businesses represent 79.4 % of check payment value4<br />Fraudulent Check Schemes Trending Upward<br />
    4. 4. 35 % of Americans reveal having been approached by someone who sent them a realistic looking check, and requested they send monies somewhere else in return<br />45 % of Americans believe that most fraudulent check scams targeting them originate from people in the US<br />57 % of Americans believe their bank will go after the fraudulent check writer, in order to recover lost funds<br />45 % of Americans indicated that the fraudulent check writer is responsible for losses resulting from a scam<br />What Do Consumers Think?<br />from the Alliance for Consumer Fraud Awareness, Scam Benchmark Survey Topline Report<br />
    5. 5. In a survey of 269 senior executives, risk to reputation was selected as the most significant threat to business1<br />Companies cited reputational risk as most costly, with 28% describing financial toll of the problem as major2<br />Organizations may be punished not for failure per se but simply because they are held to wrong standards3<br />Reputational risk not mentioned in the original COSO guidelines for ERM but now even firm with dedicated reputational risk officers is likely to need outside help4<br />Reputation at Center of Risk Universe<br />
    6. 6. How Can This Affect Your Reputation?<br />victim receives fraudulent check<br />victim deposits fraudulent check<br />bank contacts victim for funds<br />defrauded victim calls company<br />
    7. 7. Leading global consumer products company with over 12k employees in more than 70 countries world wide issued web-based consumer alert of fraudulent checks<br />Leading public affairs advocacy group with over 325 members (corporate and research operations) globally issued web-based consumer alert of fraudulent checks<br />Leading global consumer products company with over 32k employees in more than 70 countries world wide issued web-based consumer alert of fraudulent checks<br />Recent Fraudulent Check Schemes<br />
    8. 8. What Would Your Organization Do?<br />
    9. 9. Client specific, dedicated, toll free telephone response line fully staffed to field inquiries from those affected<br />Data collection and warehousing service for recording and reporting the facts relative to individual incidents<br />Single purpose web portal allows for management and dissemination of a firm’s publicly consistent protocol<br />Customized report portfolios and procedural insert for supporting and supplementing your control functions<br />Process for investigation and removal from blacklists<br />Fraudulent Check Response Service (FCRS)<br />
    10. 10. Benefits To Your Organization<br />
    11. 11. Thank You<br />Christopher Burt<br /><br />