Which pattern is a common indicator of check fraud?

Which pattern is a common indicator of check fraud?

• A. Large, irregular deposits of varying amounts
• B. Frequent deposits in round numbers
• C. Checks written to organizations only
• D. Deposits from multiple banks

Answer: (B)

Round-number deposits that occur frequently stand out as a warning sign because legitimate deposits tend to vary in amount. When deposits come in at exact, round figures on a regular basis, it suggests a deliberate pattern aimed at simplifying accounting or masking illicit activity, which is a common tactic in check fraud. In contrast, many legitimate transactions produce irregular or varied deposit amounts, so those patterns are less suspicious. The other options don’t point to a consistent, self-reinforcing pattern indicative of fraud: deposits to organizations alone can be legitimate, and deposits from multiple banks or large irregular deposits can occur in normal business or personal circumstances without implying fraud. The recurring, round-number nature of deposits is the signal that investigators look for when check fraud is suspected.

Round-number deposits that occur frequently stand out as a warning sign because legitimate deposits tend to vary in amount. When deposits come in at exact, round figures on a regular basis, it suggests a deliberate pattern aimed at simplifying accounting or masking illicit activity, which is a common tactic in check fraud. In contrast, many legitimate transactions produce irregular or varied deposit amounts, so those patterns are less suspicious. The other options don’t point to a consistent, self-reinforcing pattern indicative of fraud: deposits to organizations alone can be legitimate, and deposits from multiple banks or large irregular deposits can occur in normal business or personal circumstances without implying fraud. The recurring, round-number nature of deposits is the signal that investigators look for when check fraud is suspected.