Financial Cryptography and Data Security

In this paper, we present a digital check forgery attack on check processing systems used in online banking that results in check fraud. Such an attack is facilitated by multiple factors: the use of digital images to perform check transactions, advances in image processing technologies, the use of untrusted client-side devices and software, and the modalities of deposit. We note that digital check forgery attacks offer better chances of success in committing fraud when compared with conventional check forgery attacks. We discuss an instance of this attack and find several leading banks vulnerable to digital check forgery.