Automated deposits eliminate empty-envelope fraud, since deposits are imaged and verified in real-time. Wells Fargo is the first large institution to pilot a large-scale deployment of imaged ATMs. About 50 percent of the country’s bank- and credit-union-owned ATMs still rely on envelopes. Some institutions would rather eat losses than invest in regular reconciliation, which remains a very manual process. But imaging technology is expensive, and losses related to check fraud are not high enough for bankers to see an immediate need.”]
Source: https://www.cuinfosecurity.com/end-to-empty-envelope-fraud-a-2865