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Understanding The Rise of Check Fraud and How to Protect Yourself
03/26/2025
In recent years, check fraud has seen a significant increase, posing challenges for both banks and their customers. Understanding the nature of this fraud and adopting preventive measures can help safeguard your finances.
According to the Financial Crimes Enforcement Network, there was nearly a 100% increase in check fraud from 2021 to 2022. This surge began during the pandemic, as the distribution of relief payments via mail provided more opportunities from fraudulent activity. According to the Independent Community Banker's Association (ICBA), factors contributing to the rise include:
- Mail theft
- Social media facilitation
- Decline in check handling expertise
Common check fraud scams:
One prevalent scam involves fraudsters sending counterfeit checks, often for amounts exceeding what is owed. They then request the recipient to send back the excess funds, typically via gift cards or wire transfers. By the time a bank identifies the check as fake, the victim has already sent the money, resulting in a financial loss.
Protective Measures Against Check Fraud
To minimize the risk of falling victim to check fraud, consider the following steps:
- Use Secure Payment Methods: Whenever possible, opt for electronic payments, which are generally more secure than paper checks.
- Secure Your Mail: If you're sending checks via mail, use secure mailboxes and consider sending them from the post office. when expecting checks, monitor your mail closely and retrieve it promptly.
- Monitor Your Accounts Regularly: Frequently review your bank statements and our account activity to detect any unauthorized transactions early.
- Be Cautious with Unsolicited Checks: If you receive a check unexpectedly, especially from unknown sources, verify its legitimacy before depositing or cashing it.
- Educate Yourself on Scams: Familiarize yourself with common scam tactics and fraud trends.
By staying informed and vigilant, you can significantly reduce the risk of check fraud and protect your financial well-being.
Click here for additional check fraud prevention tips from the ICBA