Module 2 Discussion
1-Answer the initial question (About 150 words)
Consider the following statement:
"To reduce fraud, checks that utilize mechanical or electronic signature systems should not be honored."
Decide if you agree or disagree with this statement. State your decision and provide your reasoning for this week’s Discussion assignment.
2-Reply to 1 student posts by commenting about their posts and building on the subject
(About 100 words each)
APA reference.
Student posts:
1-Dayana Alvarez
Unfortunately, fraud is something that will haunt us for a lifetime because fraudsters will always find a new way to get what they want even when technology changes. However, I disagree with the statements that checks that utilize mechanical or electronic signature systems should not be honored. As we progress in life, technology keeps changing to help us with our daily activities and workload by providing more efficient ways to deal with every day tasks such as signing documents and checks. If we think that by not honoring checks that were signed electronically, we’ll deter fraud, we are lying to ourselves because checks that are signed manually have been part of many frauds as well. According to the UCC, “nearly any symbol executed or adopted by a person with the intent to authenticate a written or electronic document can be a signature” (Clarkson, Miller & Cross, XXXXXXXXXXFor example, when I used to work for Bank of America, I got a customer that when he opened his checking account, he signed using a star symbol. The same symbol was showing on his drivers license and it was the same signature he used for his checks. It was very easy for anyone to forge his signature and get the funds out of his accounts. So, how is this different than using electronic signed checks? In my opinion, not different at all. I believe that to help reduce fraud, banks and businesses should use other types of software that could help to automatically verify the signatures and the validity of the checks before approving them for payment.
References
Clarkson, K., Miller, R. L., & Cross, F. B. Business Law Text and Cases. An Accelerated
Course. Boston, MA: Cengage Learning.
2-Trevor Bendert
"To reduce fraud, checks that utilize mechanical or electronic signature systems should not be honored."
According to the UCC, “a signature can include any name, word, mark, or symbol that is executed or adopted by a person” (Book). If a person is not considered liable for an instrument unless they have signed it, also known as primary liability. I strongly disagree with the statement “to reduce fraud, checks that utilize mechanical or electronic signature systems should not be honored” since fraud can also occur outside of electronic banking. While fraud is more likely to occur through online banking or utilizing electronic signatures, online banking plays a huge role in today’s society. According to a 2016 study, over 62% of Americans primarily use online banking with a trend of increasing in the future (OnlineStatistics). Without electronic signatures, Americans would not be able to send checks or pay bills that need electronic signatures. Also, it is important to note that fraud will always happen because fraudsters usually have background information about the company or have been planning the crime for some time. Online or in person, the only thing companies can do to prevent fraud is to create or update internal controls/cybersecurity to prevent the possibility of fraud. By not allowing electronic signatures, all contracts would need to be completed in person to prevent a fraudulent signature from occurring.
Source:
Clarkson, K., W, Miller, R. L., & Cross, F., B XXXXXXXXXXBusiness Law Text and Cases Fourteenth Edition. Canada: Cengage Learning.
Gonzalez-Garcia, J. (2019, April 11). Online and mobile banking statistics. Retrieved from https://www.creditcards.com/credit-card-news/online-mobile-banking.php