Cheque fraud overtaken by contactless card fraud
Earlier this year, it was announced that cheque fraud scams had been overtaken as the most common form of fraud and that contactless card fraud has become more prevalent. The news led fraud experts to caution banks not to remove the £30 limit on contactless payments, warning that it could incentivise more criminals to steal contactless cards.
Criminals have also figured out that it is possible to fraudulently charge people’s cards from a distance of a few inches with card readers, a process known as ‘card skimming’. Some of the UK’s biggest retailers have even begun selling wallets with anti-fraud shields so that cards are protected while they are still in a wallet or handbag.
Although many measures are being taken to combat this new form of fraud, cheque fraud should not be forgotten about and is still a threat in both the UK and abroad. Banks are, however, becoming more vigilant when it comes to identifying lost or fraudulent cheques as they make their way through the clearing system. This has meant that £9.30 in every £10 of attempted cheque fraud is halted before any loss is able to occur.
One way that the banks are combatting cheque fraud is through the new cheque imaging process. This allows images of cheques to be transmitted between banks and building societies, reducing the time between cashing the cheque and the funds clearing in the recipient’s account.
Although cheque customers are still able to pay cheques into banks or building societies, instead of the traditional process, which saw the cheque manually collected, delivered and sorted, an image of the cheque will instead be created and then electronically transmitted through the new digitalised cheque clearing system.
Banks may also offer account holders the option to download a mobile banking app and upload the images themselves. Corporate customers could also be provided with a scanning facility to scan and create images of large numbers of cheques.
At Hague, we offer secure cheque printing for corporate users across the UK. Our cheques meet all the security standards set by the UK’s Cheque and Credit Clearing Company and include powerful anti-fraud security features which make them nearly impossible for criminals to either alter or replicate. What’s more, they are designed to meet new cheque clearing requirements so can be quickly recognised throughout the new imaging process meaning that funds will clear without any problems arising.