MSE News: Paying cheques by photo set to come soon, Government confirms

JuicyJesus

savetilibleed wrote: »

When I paid some cheques in just after Christmas, using the Lloyds paying in machine, it prints a small image of the cheque of the receipt. So I guess us uploading an image is not so different to that as their machine simply scans and reads the cheque in the same way a photo uploaded could be.

You get a photocopy of the cheque, yes, but the physical item is still sent off to be processed through the clearings. This removes the physical item from the equation entirely.

I do however think there will be an absolutely incredible uplift in first party fraud from this. Cheques are fraud magnets, and that's even with the requirement to deposit a physical item which can be inspected. There is absolutely nothing to stop someone photoshopping a new codeline onto an image of a cheque and getting a completely nonexistent fraudulent cheque stuck through the clearings.

shortcrust

I'm not sure fraud will be a big issue because I suspect it'll to be "subject to status". A good history with the bank and a good credit record.