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Check Fraud Risk at Proprietary ATMs

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Question: 
What are ways we can mitigate check fraud risk at proprietary ATMs that take deposits?
Answer: 

Probably the most effective way to reduce the risk is to review deposited checks as quickly as possible to spot any obvious problems. That can mean changing the time of day that deposits are pulled from the ATM's depository for review and processing. In the case of ATMs that don't use deposit envelopes and create images of checks deposited, access to those images before removing the checks from the depository may identify some fraudulent items.

Using ATM-generated images of the front and back of checks to clear and present the checks, rather than waiting until the depository is opened to retrieve the paper items, can speed the collection of the checks, which is another way to reduce fraudulent check losses.

The use of check images from ATMs to review the checks and/or speed their presentment and collection is particularly helpful when the ATMs are remotely located (not on bank premises). In some cases, it can allow a bank to reduce the frequency of ATM servicing, which can reduce servicing costs and reduce security concerns related to servicing visits.

First published on 07/11/2021

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