Essential Tips to Help Prevent Check Fraud

In an era of fast-moving technology and digital payments, it may be surprising that one of the biggest increases in recent financial fraud stems from an old-fashioned scheme: check fraud. 

There has been a dramatic increase in check fraud over the last several years. According to the Financial Crimes Enforcement Network (FinCEN), the annual volume of check fraud jumped by 84% to $815 million in the U.S. in 2022. One of the most common tactics driving the increase in check fraud is mail theft. Fraudsters are stealing mail, searching for checks, and selling the checks – sometimes on the dark web. FinCEN issued an alert about a nationwide surge in mail theft-related check fraud schemes. 

A few common methods fraudsters use to commit check fraud include:

• Altering information: A scammer may use common household chemicals to change the dollar amount and payee name on a check, known as “check washing.” 
• Forging endorsements and engaging in identity theft: Checks typically include name and address information that criminals may use to steal someone’s identity. A fraudster may attempt to open a bank account to negotiate the check payable to the intended payee by forging the endorsement, and then proceeding to leverage that stolen identity to apply for credit products using the victims’ personal data.
• Creating counterfeit checks: By using the information on a stolen check, fraudsters may further exploit the victim’s account information by creating additional counterfeit copies of the check.

Tips to Help Prevent Check Fraud When Sending Money to Others

• Pay digitally. Reduce the number of checks you send and use card or digital payment methods instead.
• Consider the type of pen you use. Use a black gel pen if you do write a check. These types of pens have ink that is more difficult to remove. 
• Use mailboxes that are secure. If you need to send a check by mail, use the mailbox inside of a U.S. Postal Service facility rather than at a curbside mailbox or your residential outgoing mail. 
• Keep your bank account information safe. Do not share or post your bank account information anywhere publicly, and never share account information with anyone with whom you did not initiate the communication. Do not allow websites to save your routing/transit and account number information. 

Your security is our top priority. With a little caution and know-how, you can avoid becoming the victim of a check fraud scam.