Threat of the Week: Looting via Mobile Remote Deposit Capture
Boma Robert Spero-Jack suddenly has many mouths in banking security making worried sounds.
That’s because the Louisville, Ky., man apparently used mobile remote deposit capture and a Bank of America account to deposit 32 Western Union money orders that he also cashed out at a Kroger. That means he used mobile RDC to in effect double his money.
How much fraud is occurring with MRDC? Nobody knows. There is no central clearinghouse that collects numbers. But Bernstein is adamant that his best guess is that the incidence is minimal.
“What we have for evidence of system abuse through five years of experience is almost exclusively anecdotal,” the EasCorp executive said. “In this regard, the number and dollar losses attributable to outright fraud, such as the type described in the [Boma Robert Spero-Jack] story, and which we have learned about, is absolutely incidental.”