Fidelity Tightens Mobile Deposit Rules After Fraud Scheme #

Fidelity Investments has implemented stricter controls on deposits made through its mobile app in response to an alleged check-fraud scheme that recently targeted the company.

The investment firm has significantly reduced the maximum deposit amount for certain customers using their cash-management accounts. The new limit has been set at $1,000, down from the previous $100,000 cap.

In addition to lowering the deposit limit, Fidelity is now imposing a longer hold period on some account-holders. These customers may face a wait of up to 16 business days before their deposited funds become available for withdrawal or investment.

These measures are part of Fidelity’s efforts to enhance security and prevent fraudulent activities within its mobile banking services. The changes come in the wake of a recent incident that exposed vulnerabilities in the company’s deposit system.

The tightened restrictions are expected to affect a subset of Fidelity’s customer base, particularly those who frequently use the mobile deposit feature for larger transactions. While these new policies may cause some inconvenience, they represent a proactive step by the company to safeguard its customers’ assets and maintain the integrity of its financial services.