Fraudsters are increasingly using information gained from public record searches on recorded mortgages to create checks drawn on home equity lines of credit, ICBA told community bankers.
Details: In a new message, ICBA President and CEO Rebeca Romero Rainey said several ICBA members this week have reported an uptick in HELOC-related check fraud.
Background: HELOC documents often contain all the information a fraudster needs to generate checks, including the customer's name, address, lender, signature, and account number.
Mitigation: Romero Rainey recommended that community bankers
mitigate this growing source of fraud by:
Not printing the account number on new mortgage documents.
Reviewing all HELOC checks processed.
Advising customers to regularly review their HELOC accounts.
Reporting incidents to the FBI's Internet Crime Complaint Center on its website.
Recent Coverage: ICBA Vice President of Operational Risk and Payments Policy Scott Anchin continues to raise awareness of check fraud in the media. Most recently, TIME magazine featured Anchin's remarks on the security risks associated with check usage.
Resources: For more information on check fraud, community bankers can:
Listen to an “Independent Banker” podcast that discusses check fraud and how community banks can fight this alarming epidemic.
Download ICBA’s check fraud guide.
Join the new fraud subgroup on ICBA Community.
Read Independent Banker’s latest article on check fraud mitigation tips.
Watch the recording of ICBA’s ThinkTECH Solutions Forum on fraud.
