The Growing Threat of Check Fraud: Thieves' Advantage

The decline in check usage has not deterred fraudsters, who have increasingly turned to check fraud, costing financial institutions billions. Criminals leverage technology and social media to commit fraud on a grand scale, using stolen checks purchased online and altering them with basic tools like nail polish remover. The surge in mail theft during the pandemic has further fueled check fraud. Banks and credit unions are expected to file a record number of suspicious activity reports tied to check fraud this year. However, anti-fraud measures by banks can sometimes misfire, freezing or shutting down innocent customers' accounts. The complex nature of check fraud investigations and the lack of communication between banks make it difficult to determine liability and resolve cases promptly, leaving victims frustrated. Despite the risks, check usage remains popular among consumers for certain transactions.