Big banks face new check fraud challenges

MORNING. >>> MEANTIME, AMERICA'S BIG BANKS SAY THEY HAVE A HUGE CHALLENGE, AND THAT IS CHECK FRAUD. ONE OF THE OLDEST CRIMES IN FINANCE BEING SUPERCHARGED BY SOME OF THESE POPULAR MESSAGING PLATFORMS LIKE TELEGRAM. IT'S BECOME A ONE-STOP SHOP FOR CRIMINALS. OUR EAMON JAVERS HAS DETAILS >> IT'S A BIG PROBLEM THAT'S GETTING WORSE. >> Reporter: PAUL IS THE SENIOR VICE PRESIDENT OF CYBER SECURITY AND RISK AT THE AMERICAN BANKERS ASSOCIATION. AND HE SAYS THAT PAPER CHECKS ARE ONE OF THE FINANCIAL SYSTEM'S WEAKEST POINTS. WOULD YOU SAY EVERY SINGLE BANK IS EXPERIENCING THIS RIGHT NOW >> I THINK THAT WOULD BE A LEGITIMATE STATEMENT. >> Reporter: IN 2021 BANKS REPORTED NEARLY 250,000 CASES OF CHECK FRAUD NATIONWIDE BUT BY 2022, THAT NUMBER SKYROCKETED TO NEARLY 460,000 CASES. THAT'S AN 84% INCREASE IN JUST ONE YEAR >> IT'S CONCERNING IT REALLY IS. >> Reporter: IN MANY CASES, CHECKS ARE STOLEN OUT OF BLUE POSTAL BOXES LIKE THIS ONE THEN CROOKS WILL CHANGE THE RECIPIENT'S NAME AND THE DOLLAR VALUE OF THE CHECK USING FORGERY TECHNIQUES NEXT, THEY'LL OPEN AN ACCOUNT AT A BANK IN A PHONEY NAME AND HIRE SOMEONE TO DEPOSIT THE CHECK THAT'S WHAT HAPPENED HERE. THIS SURVEILLANCE VIDEO SHOWS AN ELDERLY HOMELESS MAN DEPOSITING A FRAUD LEPT CHECK THAT WAS CASHED FOR NEARLY $3,000 ORGANIZED GAMES ARE USING TECHNOLOGY LIKE TELEGRAM TO ORGANIZE THEFTS, CONNECTING THOSE WHO HAVE STOLEN THE CHECKS WITH PEOPLE THAT WILL WALK INTO BANKS AND DEPOSIT THEM THEY ARE KNOWN AS WALKERS. LET'S TALK ABOUT THE ITEM OF WALKER >> EXACTLY WHAT IT SAYS, SOMEONE WHO WALKS INTO A BANK TO CASH THE CHECK. THEY'RE YOU'RE MULE. >> Reporter: USERS CAN MESSAGE ON PRIVATE AND AND PUBLIC CHATS. THEY CAN USE AN ANONYMOUS USER NAME AND ENCRYPT THEIR MESSAGES, MEANING POLICE CAN'T TRACE THEM. WE FOUND GROUP CHATS WITH LOTS OF POSTS FROM CRIMINALS ADVERTISING THEIR NETWORK OF WALKERS TO HELP OTHER CROOKS WHO WANT TO CASH OUT THEIR STOLEN CHECKS. >> THIS PARTICULAR INDIVIDUAL IS BEING ADVERTISED AS A WALKER. >> Reporter: MARIA, CYBER INTELLIGENCE ANALYST AT THE FIRM Q6, A CONSULTANT TO CNBC >> YOU CAN SEE BY THE CAPTION HERE, GOOD WALKER, THAT'S READY, ALL SPAMMERS TAP IN. MEANING EVERYBODY WHO WANTS TO GET WITH THIS WALKER TO CONTACT THE THREAT ACTOR THAT HAS POSTED THIS. >> Reporter: THIS IS A CRIMINAL ADVERTISING, I'VE GOT THIS GUY, HE'S A WALKER, READY TO GO INTO THE BANK AND DEPOSIT A BOGUS CHECK. CALL ME IF YOU WANT TO USE HIM >> BASICALLY, YES. >> Reporter: CNBC VIEWED DOZENS OF ADVERTISEMENTS FOR WALKERS. SOME ASKED FOR SPECIFIC GENDERS. SOMEONE WANTED ELDERLY THIS CROOK BOASTED ABOUT BUYING A NEW HAT FOR MY WALKER. >> WHEN I SAY GROOMING, THEY'RE NOT JUST BRUSHING THEIR HAIR A LOT GOES INTO TRYING TO MAKE THESE GUYS LOOK AT LEGITIMATE AS POSSIBLE YOU CAN SEE HERE, THIS GUY IS GETTING HIS HAIR BLEACHED. >> Reporter: THIS IS A DYE JOB, RIGHT? >> IT LOOKS IT. >> Reporter: THE BIG BANKS SAY ALL OF THIS IS CAUSING ENORMOUS HEADACHES FOR THE INDUSTRY. >> WE CAN'T DO IT ALONE. WE NEED THE POSTAL SERVICE TO GET BETTER AT PROTECTING THE MAIL WE WANT LAW ENFORCEMENT TO STEP UP THEIR GAME AND PROSECUTE MORE OF THESE CASES. >> THE WALKERS WE SAW ADVERTISED WERE OFTEN THE ELDERLY AND HOMELESS IT SEEMS CLEAR THEY'RE GETTING THE SMALLEST CUT OF THIS CRIME, WHICH CAN PRODUCE BIG MONEY. WE SAW CROOKS POSTING RECEIPTS FOR MORE THAN $20,000 IN SOME CASES. TELEGRAM SAYS IT PROACTIVELY MODERATES PUBLIC CHANNELS AND BANS ANY THAT VIOLATE ITS TERMS OF SERVICE WE ALSO SEE CLAIMS BY THE CROOKS THAT THEY'RE GETTING HELP FROM WHAT THEY CALL INSIDERS AT THE BANKS AND THE POSTAL SERVICE WHO ARE HELPING THOSE GANGS GET AWAY WITH IT. TO STOP THIS FRAUD, THE U.S. PO

Channel: CNBC Television

Views: 108,891

Keywords: app, business news, cnbc, digital, disrupt, funding, innovation, investors, nasdaq, nyse, online, silicon valley, startup, stock market, tech, techcheck, technology, venture, wall street

Id: gOHHe00t7vE

Length: 3min 57sec (237 seconds)

Published: Mon Feb 06 2023