Appreciation post: That bank teller who caught a bogus $850 check before it cleared

My local credit union in Akron flagged a check from "Johnson Consulting" last Tuesday that looked perfect but had a routing number for a bank that doesn't even exist anymore. How many of us are just trusting the mobile deposit app until it bites us?

3 comments

3 Comments

emma76817d ago

Yeah I used to be one of those people who just snapped a photo of a check and forgot about it. Never really thought about how easy it would be to fake one until my cousin got hit with a $300 fee from a bad e-check he deposited through his phone. Now I actually look at the routing numbers and check the bank names before I hit submit.

richardknight17d ago

So you're saying the check cleared but you just don't trust mobile deposit anymore? Actually, the teller catching it before it cleared is exactly why you should trust the system more, not less. Most banks have fraud detection that flags suspicious items before they post. The issue isn't mobile deposit itself, it's people not double-checking who they're taking checks from. Your cousin probably got that fee because the bank fronted him the money before the check fully cleared, which is a courtesy not a guarantee. If you wait the full hold time and verify the check's real before spending the money, mobile deposit works fine. Just don't treat it like instant cash and you're good.

terry_bailey3514d ago

Honestly, you're right about the fraud detection catching stuff, but that detail about the bank fronting the money is a little off. Most banks don't just "front" you the money as a courtesy anymore. They usually make funds available under Reg CC rules, which has specific hold times for different check types. Your cousin's fee probably came from him spending that provisional credit before the check cleared the other bank. Mobile deposit is basically the same as handing a check to a teller, it just moves faster on the front end. The real lesson is never touch the money until the hold period expires, no matter how real the check looks.