As smartphones and other mobile devices become the norm to hold conference calls, send highly sensitive emails, shop online and more, mobile banking via these devices has also dramatically increased in popularity. With many banks offering mobile apps, it has become fairly easy and common for consumers to scan checks with their mobile devices, and simultaneously deposit that check into their bank account without ever visiting an ATM or bank branch. This unprecedented convenience has led to a series of risks, ranging from outright fraud to unintended errors.

After all, the people scanning deposits or taking pictures of checks on mobile phones are for the most part neither professional photographers nor check-cashing professionals. Picture angles and shadows may affect image quality, which in turn can lead to processing errors.

The Check 21 Act of 2004 legalized the creation of digital versions of paper checks for processing and spells out a variety of rules required for check-imaging. But in mobile depositing, there is one notable difference — the consumer holds onto the check.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.