A recent blog post on the Atlanta Federal Reserve Bank'swebsite is blunt: to stay competitive financial institutionsneed to offer mobile remote deposit capture.
|As for the impact on fraud of MRDC,the Atlanta Fed wrote: “We've seen no evidence in the past year tosupport an uptick in fraud.”
|The blog continued: “However, we have ample evidencedemonstrating that the product is becoming mainstream through the mobile channel. With four largefinancial institutions incorporating RDC with their mobileapplications over the summer, eight out of the 10 largestdepository institutions currently offer the product.”
|A bottom line: the Fed said that there are plenty of wellunderstood safeguards against mobile RDC related fraud and the key,said the blog, is KYC, Know Your Customer. It ticked offthree points:
- The length of the customer's relationship. Howlong has the account been open?
- The depth of the customer's relationship. Howmany accounts does this consumer have with the institution?
- The experience with the customer. Does thecustomer have a history of depositing bad checks?
Know the customer, suggested the Fed, and it is straightforwardto set limits – on deposit amounts and frequency – that willprotect the institution.
|This particular blog is authored by Douglas A. King, a paymentsrisk expert at the Atlanta Fed. The blog is hosted on thatFed's “Retail Payments Risk Forum.”
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