I just found out that our operations department is rejecting deposited checks due to "irregular endorsement."

Customer's signatures change over time or when they endorse their check in a hurry. Is anyone else doing this for a check that is made payable to the customer and it's being deposited into the customer's account?

Not sure what the risk is here? Am I missing something?

It is basically purely a waste of everyone's time and as a customer - I would just leave the bank.

For mobile deposits, this is a worthwhile endeavor on certain items.

Scammers who hijack customers' credentials and deposit counterfeit checks in the victims' accounts either print an endorsement using some kind of script font, or simply scribble an illegible endorsement.

Your risk is that once the deposit posts, the scammer either forwards the funds onward (using the victim's credentials), or entices the victim to do so.

JacPCB - good point.

Randy - still laughing regarding your comment.......BUT from a risk perspective maybe set a threshold. JacPCB thanks for your insight!

We review our mobile deposits and reject them if the endorsement does not contact "mobile" and our bank name because of the liability issues if the item is presented twice.