Scammers have all kinds of high-tech options to choose from, but old-fashioned paper check scams are still a top choice for many. In one of its latest Updates, the Nebraska Bankers Association reported on a scheme in which criminals forge checks and take homeless people from a metro area to rural banks in attempts to cash the checks. Banks must be extra vigilant when processing business payroll checks.

You can read the NBA’s article here, and the more about the scheme here.

Another check fraud scheme in the news recently involved a temporary glitch in JP Morgan Chase’s ATM system where users deposited bad checks and immediately withdrew funds before the checks bounced. This is a good reminder for banks to be aware of account holder liability when there is accidental unlimited access to funds and of viral events that publicize when an error or software issue occurs. Here is more information on this recent scheme.

CCI recommends that banks consider joining the ABA Fraud Contact Directory, which is an enhanced resource that allows banks to connect with other institutions to address warranty breach claims for checks, as well as unauthorized or fraudulent transfer claims for wires, ACH, RTP, or FedNow. You can register here.