New Report Reveals Growing Small Business Check Fraud Problem
November 07 2023 - 8:00AM
Business Wire
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
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.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20231107781210/en/
(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.
Follow Mitek on LinkedIn and YouTube and read Mitek’s latest
blog posts here.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231107781210/en/
Media Inquiries: Angela Romei, Mitek Senior Director
pr@miteksystems.com
Mitek Systems (NASDAQ:MITK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Mitek Systems (NASDAQ:MITK)
Historical Stock Chart
From Apr 2023 to Apr 2024