Fingerprinting at Banks
Why Does a Bank Need a Thumbprint to Cash a Check?
The practice has been controversial, criticized by some civil rights groups, consumers and lawmakers as an unnecessary invasion of privacy. Yet, banks say it’s proven an effective deterrent to the growing problems of check fraud and identity theft.
Why Do Banks Ask for Fingerprints?
When a non-customer comes in to cash a check that is drawn on the bank, banks that participate in a fingerprinting program ask the person to provide a thumbprint. Banks say the practice deters potential fraudsters, who won’t want to give a thumbprint for fear of being later identified and arrested.
The practice was originally developed by the Texas Bankers Association ten years ago, but has since caught on nationwide in response to growing problems of check fraud and identity theft. It’s now supported by most state banking associations, as well as the American Bankers Association.
Not all banks have a fingerprinting program in place. Despite its growing popularity, the practice is more common at larger, national banks.
What Do Banks Do With the Fingerprints?
Thumbprints are placed directly on the check that’s being cashed, which is later scanned into a bank’s computer system for storage, as is the case with all checks. The paper copy is eventually destroyed. If fraud is suspected at any point, the check with the thumbprint is recovered and turned over to law enforcement. It’s unclear how effective the practice has been in deterring fraud.
Despite some public concern over the practice, banking giants insist they do not keep a database strictly of fingerprints, nor do they turn they fingerprints over to a third party in any case except where fraud is suspected. They have not publicly discussed how long the prints are stored or who has access to them.
Is Fingerprinting at Banks an Invasion of Privacy?
Critics of the practice have not been shy about saying it goes too far. Civil liberties groups and some lawmakers have publicly raised serious questions about the practice. In New Hampshire, a bill was introduced to the state legislature in early 2009 that would ban the practice. As of late July, it had not yet gone to a vote.
The American Civil Liberties Union of Massachusetts, in response to complaints about the practice, issued a statement in December 2008 saying fingerprinting at banks endangers civil liberties. The statement raises several questions about the practice that the organization believes have been unanswered, including:
- Are there adequate prohibitions on the sale, sharing, or transfer of the fingerprint information?
- Is the information stored safely?
- How necessary and effective is the program?
Consumers that do not want to provide a fingerprint generally have two options: open a bank account with the particular bank or take the check elsewhere to be cashed. The ACLU of Massachusetts encourages consumers to refuse to cash their checks at banks that require fingerprints.
Fingerprinting at Banks
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