Over the past few years, check fraud has been on the rise, with an uptick in cases more recently. According to the Iowa Bankers Exchange, Suspicious Activity Reports for check fraud increased by 201.2% from 2018 to 2022. Nasdaq’s 2024 Global Financial Crime Report revealed that in 2023 alone, check fraud led to $21 billion in losses in the Americas, accounting for 80% of check fraud losses worldwide. Check fraud may seem like an outdated criminal’s tactic, but fraudsters still rely on this method to steal funds.

What is check fraud?

Check fraud has continued to escalate due to its relatively simple nature. Criminals break into mailboxes to obtain checks and then alter them to steal large sums of money before the victims have any idea that a check is stolen. Checks located in personal mailboxes, blue USPS boxes, or even the P.O. boxes outside apartments or townhomes can be compromised if they are able to gain access to the master key. Once a fraudster has access to a check, they can replicate the style and forge signatures to continue the scam. To profit from stolen checks, criminals use a chemical solution to remove the ink to change the payee and dollar amount information.

How to protect yourself

Now that you know how check fraud occurs, how can you be diligent in protecting yourself from falling victim to it? Your first step should be considering limiting how many checks you write. As long as there are checks in the mail, criminals will continue their efforts to steal them. Outside of this, there are many other safety precautions you can take.

1. Go to the Post Office. Placing outgoing mail in your personal mailbox and raising the flag is a clear sign to criminals that they should check your mailbox for checks. Take your mail into the Post Office instead of placing it in one of the blue USPS mailboxes. This will keep it out of immediate reach of criminals. If you know that you will be out of town for an extended period of time, place a hold on your mail and retrieve it once you return.
2. Use black gel pen. Using a black gel pen with indelible ink to write your checks is another way to keep your checks safer. This type of ink sinks into the fibers of a check, making it harder for criminals to wash the check with their chemical solutions.
3. Check your bank account routinely. Create a habit of recording your transactions and balancing your checkbook to make sure every payment is properly deposited and accounted for. If you notice any discrepancies, report them to your bank immediately; the best way to stop fraud is to be quickly proactive. Old checks and paper statements should be shredded to ensure they stay out of falling into the wrong hands. Want to skip paper statements altogether? Click here to sign up for eStatements.