The American Banker’s Association (ABA) launched Practice Safe Checks in October 2024 to help consumers protect themselves against the growing threat of check fraud stating, “An unprotected paper check is a gold mine for criminals.” [1]
While the use of paper checks has declined, the ABA reports that they still account for a large portion of business-to-business transactions despite being an attractive target for fraudsters. “Over the last several years, the number of fake check scams reported to the Federal Trade Commission (FTC) has steadily increased, and so have the dollars lost. Despite the efforts of the FTC and other agencies to stem this activity, consumers reported losses of $10.3 billion in 2023 (up from $8.9 billion in 2022). Numbers for 2024 are not yet available but are predicted to top 2023 in both numbers of incidents and losses.” [2]
Check fraud isn’t anything new. Fraudsters are finding new ways to scam consumers with fraudulent checks. It begins with the check itself which gives fraudsters plenty of information to commit criminal acts. Highlighted in red, are the most vulnerable parts of a paper check:
Checks typically include the name and address of the payer, routing numbers, and signature. Fraudsters may use any of that information to steal an identity. It is also possible for a fraudster to attempt to open a bank account, forge the endorsement, apply for credit, or create counterfeit copies of the check.
Understanding the tactics fraudsters use is the first line of defense.
- Criminals raid mailboxes and intercept mail; snatched checks are altered and used to steal money.
- Criminals use chemicals to “wash” checks, erase and rewrite details to siphon funds into their accounts such as recipient’s name and dollar amount.
- Criminals create counterfeit checks using routing and account numbers and modern printers and software.
Steps consumers can take to reduce the risk of being taken advantage of by check fraud.
Use these tips to protect yourself:
- Pay online whenever you can. Many businesses, medical practices, and municipalities offer the option to securely pay online using a credit or debit card or directly from your bank account. Online payment is considered safer than check due to encryption and multi-factor authentication. However, it’s essential to use secure networks and trusted platforms whenever making electronic payments.
- Use your bank/credit union to send checks on your behalf via bill pay. Bill pay authorizes your bank to print and send a more secure check to the recipient or directly deposit to a known account safely and securely. Bill pay also allows for automatic payment of recurring bills.
- Write checks using a black gel pen. Gel pen ink is more difficult to remove.
- Avoid blank spaces. Fill in all of the blank spaces on the check face.
- Use secure mailboxes. Mailboxes inside of a USPS facility are more secure than a curbside USPS box or residential outgoing mail.
- Monitor your bank accounts and credit and debit accounts frequently, and review your monthly statements. Doing so will catch fraud more quickly. View the face and back of checks that have passed through your account.
- Use more secure checks. Checks with security features such as chemically sensitive paper, invisible watermarks or holograms, and special inks that change color make it harder for fraudsters to change checks.
- Keep your bank account information safe. Do not share your bank account information with anyone with whom you did not initiate communication. Make sure that websites do not save your routing and account number information.
Report fraud.
If you suspect fraud with a paper check, immediately contact your bank and inform them of your suspicions; do not deposit the check or consider placing a stop payment as the situation warrants. Report the potential fraud to the appropriate authorities: local police department, the Federal Trade Commission (contacts below), your state’s Attorney General, and the U.S. Postal Inspection Service (contacts below) if the check was mailed.
Consumers can outsmart fraudsters and avoid becoming the victim of a check fraud scam with a little caution, know-how, using digital tools, and using high-tech secure checks. Download the Check Safety Guide from the ABA for more information.
Contacts:
FTC, ReportFraud.ftc.gov or 1-877-FTC-HELP (1-877-382-4357)
USP Inspection Services, www.uspis.gov or 1-877-876-2455
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Sources:
[1] Practice Safe Checks, American Bankers Association
[2] FY 2024 Report on the FTC’s Top Management and Performance Challenges, Federal Trade Commission
Keep your finances safe and secure: Essential tips for preventing check fraud, US Bank
How to Prevent Check Fraud, Sanction Scanner
Paying by Check? Think Again. Consumer Reports, March 2025
