What is Check Fraud?

Although digital payments have become more common, paper checks are still widely used, and so are check fraud scams. Criminals continue to find new ways to steal checks, alter them, or create convincing counterfeits, making it important for consumers to stay informed.

What Is Check Fraud?

Check fraud occurs when someone illegally uses a check to steal money. This can involve altering an existing check, forging a signature, creating counterfeit checks, or stealing checks from the mail before they reach their intended recipient.

Why Is Check Fraud Increasing?

While fewer people use checks today, fraud involving them has grown in recent years. Stolen mail, advances in printing technology, and organized fraud schemes have made it easier for criminals to target paper checks. Financial institutions across the country continue to report an increase in attempted check fraud.

Common Types of Check Fraud

Some of the most common check fraud schemes include:

• Check washing: Criminals use chemicals to remove the payee's name or dollar amount from a legitimate check and rewrite it.
• Counterfeit checks: Fake checks are created to look like they came from a real account.
• Forged signatures: Someone signs another person's name without authorization.
• Mail theft: Checks are stolen from residential mailboxes or outgoing mail collection boxes before they reach the recipient.

 

Tips to Help Protect Yourself

While no method is foolproof, these simple habits can help reduce your risk:

• Mail checks from secure locations rather than leaving them in an unattended mailbox.
• Monitor your bank account regularly for unauthorized transactions.
• Set up account alerts to be notified of check activity.
• Consider electronic payment options when available.
• Report any missing checks or suspicious account activity to your financial institution immediately.

 

Stay Alert

Check fraud can affect anyone, but staying aware of common scams and monitoring your accounts regularly can go a long way in protecting your finances. If you suspect fraud, contact your financial institution as soon as possible so they can help secure your account and guide you through the next steps.