Counterfeit fraud including advanced fee fraud, also commonly known as 419 Scams, utilizes confidence tricks to successfully scam vulnerable individuals. In 2013, the American Bankers Association (ABA) identified that financial industry loss and loss avoidance due to DDA fraud cost over $14 billion. Of the $648 million of all check fraud losses reported, 24 percent was a result of counterfeit fraud (approx. $155 million). And, over the last few years, counterfeit fraud has consistently been the leading DDA fraud type, increasing in losses per account to $0.41 across financial institutions (FI) by the end of 2013.
The mobile banking industry is growing exponentially as indicated in Javelin’s Mobile Banking, Tablet and Smartphone Forecast 2013-2018 report published in March of this year; 95 million adults used mobile banking in 2013, a nearly 40% increase over 2012.
A recent survey by remotedepositcapture.com revealed that 90 percent of FIs say the benefits of mobile banking far outweigh any risks. This corroborates findings included in the 2013 American Bankers Association Deposit Account Fraud Survey Report that determined 92 percent of FIs attribute no losses whatsoever to remote deposit fraud. However, in that same study, fraud-management executives were asked to identify perceived vulnerabilities and mobile banking topped the list.