Mitek Report Finds a Third of Small Businesses Encountering Check Fraud

Almost a third (31 percent) of small businesses in the US have been the victims of check fraud over the past year, according to research compiled in Mitek‘s 2023 Mobile Deposit Benchmark Report. What’s more, 65 percent of the victims reported losses exceeding $50,000.

The data comes by way of Cornerstone Advisors, a consultancy that works with banks and other financial services institutions. The firm surveyed 3,001 adult consumers in the US in 2020, 2022, and 2023, as well as 545 small American businesses in 2023.

Its findings offer valuable data for Mitek’s report, now in its seventh year, which is designed to identify both competitive best practices as well as areas where practices are lacking. Mitek is a proponent of technological solutions that can make mobile banking both easy and more secure, and is perhaps best known for its own solution enabling digital deposits using a mobile device.

The company’s portfolio also includes facial recognition for use in identity verification, a technological area of expertise that was bolstered by Mitek’s acquisition of London-based HooYu earlier this year.

“Financial institutions are critical partners to their small business customers—not only in supporting their growth, but also in safeguarding them from fraud,” said Mitek’s SVP and GM of Digital Banking, Michael Diamond. “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.”

Beyond check fraud, Mitek has also lately been concerned with the potential dangers of AI-generated deepfakes. The company recently published a guide exploring how liveness detection can be used to counteract this threat.

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November 9, 2023 – by Alex Perala