We are running into "fraud" issues with indentity theft. I am wondering how banks are still verifying funds when a merchant or customer calls for this type information? If your bank continues to do this action, what further security measures are you taking to continue funds verification procedures?

Some banks assign ID numbers tro the merchants who routinely call in. Our bank (small, rural) doesn't, yet. We will still verify whether funds of a certain $ amount are available or not, but that's it.

We did disconnect the merchant verification feature on our phone response system 2 years ago, because it didn't limit the number of inquiries on an account. We felt this was an unacceptable security risk.

Can you discuss what kind of fraud issues you're encountering?

[url=http://www.bankersonline.com/tools/tools_ppp.html#fundsverification]The procedures in the BOL Toolbox could be a good starting point for you. This is the approach that we use, and in most cases, it gives us enough information to determine whether or not we're dealing with a legitimate request. We do not allow non-customers to use the automated systems to verify funds.