Banks That Offer Remote Capture Deposit Services Need to Implement Safeguards to Prevent Fraud

By Matt Squire

Financial institutions need to look before they leap into the expanding market of remote deposit capture in order to guard themselves from the growing problem of check fraud, say consultants. Remote deposit capture (RDC), which allows merchants to deposit check into their accounts at their place of business, has grown in popularity for both businesses and banks since the Federal Reserve finalized standards for the process in October 2004. According to, RDC locations have mushroomed from 49,000 in 2005 to 285,000 in 2007 and are projected to increase to close to 2 million by 2010. Likewise, RDC dollar amount...