Is Check 21 a Door to Mass Fraud?

Check 21, which will increase the speed of check handling and collection, becomes law on October 28. But experts worry that it may have unintended security consequences.

Check-fraud versions of phishing scams are a possibility once Check 21 becomes law. According to a recent study by Surrey, U.K.-based Next Generation Security Software, nine out of 10 financial Web sites contain security flaws that could expose them to phishing attacks.

A white paper authored by three fraud experts describes the emerging risks of using check-scanning and storage technology in the financial services industry, and details the potential for a new wave of fraud.

Some experts consider insiders more of a threat than hackers though. Learn more by reading the complete article by clicking here.