Duplicate Check Fraud
Duplicate Check Fraud occurs when a fraudster intentionally deposits the same check multiple times, either by submitting it to different financial institutions or using various methods to process the same check more than once. This is often done by manipulating or altering the check's information, such as the check number or account details, to make it appear as a legitimate new transaction. The fraudster takes advantage of delays in detecting duplicate submissions or weaknesses in the banking processing systems to withdraw funds multiple times.
Example: A fraudster steals a tax refund check, alters the payee’s name, and deposits it at one bank. They then make a copy of the check, modify the details slightly, and deposit it at a different bank. Both banks may process the check without detecting the duplication, allowing the fraudster to withdraw funds from both accounts before the fraud is discovered.
With built-in check fraud mitigation capabilities, Unify, Alogent’s modern deposits platform for all full- and self-service channels, helps protect financial institutions and their account holders by mitigating attempts before they reach the back office or downstream workflows.
