New Report Reveals Growing Small Business Check Fraud Problem

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11/07/2023 - 08:00 AM

Nearly one-third of all small businesses in the U.S. have been victims of check fraud in the past year, according to the Mitek 2023 Mobile Deposit Benchmark Report

SAN DIEGO--(BUSINESS WIRE)-- Mitek (NASDAQ: MITK), a global leader in mobile deposits and fraud prevention, today released the 2023 Mobile Deposit Benchmark Report. The report offers insights into the evolving mobile banking experience of major U.S. financial institutions based on a survey of both consumers and small businesses.

(Graphic: Business Wire)

The Mitek report revealed that nearly a third (31%) of small businesses have been victimized by check fraud in the past year. In addition, among the small businesses affected by check fraud, a total of 65% reported losses exceeding $50,000 – a significant sum of money for a small business to absorb, especially in uncertain times. The increase in fraud coincides with heightened customer anxiety, with 80% of consumer respondents reporting concern that their personal information will be illegally obtained and used.

Small businesses underpin the American economy, with 33.2 million small businesses across the U.S., according to the Small Business Administration.

Additional small business findings from the Mobile Deposit Benchmark report include:

98% have adopted mobile deposit, only 10% use it for all checks received
55% reported receiving more than 50 checks per month
47% reported that check fraud is a “big concern”

Mail related check fraud, where stolen checks are often washed and used illegally, has been on the rise: The Financial Crimes Enforcement Network, a unit of the U.S. Treasury Department, recorded nearly a doubling of check fraud-related Suspicious Activity Reports in 2022 rising to more than 680,000 incidents.

“Financial institutions are critical partners to their small business customers—not only in supporting their growth, but also in safeguarding them from fraud,” said Michael Diamond, Senior Vice President and GM of Digital Banking at Mitek. “The findings in Mitek's 2023 Mobile Deposit Benchmark Report show the heightened need for comprehensive fraud protection solutions designed to cater to the needs of small businesses."

The Mitek 2023 Mobile Deposit Benchmark Report was developed in partnership with CI&T and Cornerstone Advisors. Report findings are based on research conducted by Cornerstone Advisors surveying 3,001 U.S. adult consumers (2020, 2022, 2023) and 545 U.S. small businesses (2023).

To learn more about this year’s rankings for 20 of the largest U.S. financial institutions and how fraud is shaping the way both customers and small businesses interact with their financial institutions, download the 2023 Mobile Deposit Benchmark full report.

About Mitek:

Mitek (NASDAQ: MITK) is a global leader in digital access, founded to bridge the physical and digital worlds. Mitek’s advanced identity verification technologies and global platform make digital access faster and more secure than ever, providing companies new levels of control, deployment ease and operation, while protecting the entire customer journey. Trusted by 99% of U.S. banks for mobile check deposits and 7,900 of the world’s largest organizations, Mitek helps companies reduce risk and meet regulatory requirements. Learn more at www.miteksystems.com.

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