The Cost of Check Fraud

Content from the American Bankers Association.

Criminals continue to find new ways to exploit vulnerabilities in traditional payment methods with checks being a prime target. Although check usage has dropped by 25%, incidents of check fraud have nearly doubled since 2021!* It’s important to recognize that checks contain sensitive information and can be a gold mine for scammers. What information can a stranger take from a check?

A. Your name and address

B. Account and routing numbers can be stolen

C. Blank spaces could leave room for alterations

D. Information in the memo line can be too personal

E. Your signature can be stolen to forge other documents.

Checks are vulnerable in other ways, too. These include:

• Checks are a physical item that can be stolen. Criminals frequently raid mailboxes and intercept mail, snatching checks to access and manipulate your personal details.
• Criminals are literally washing checks! Scammers will use chemicals to wash checks, erasing and rewriting details to siphon funds into their own accounts.
• Armed with routing and account numbers, which are visible on all checks, criminals easily create fake checks using modern printers and software.

What does First Security recommend?

Protect your money by using our digital payment options whenever possible. Digital payments are more secure in every way checks are not. Through using your debit card via your phone’s mobile wallet, or using Zelle®, there are no physical documents with your personal information for a fraudster to intercept. Digital payments can’t be altered or forged. They are encrypted and require multiple layers of authentication. There’s immediate verification and a real-time transaction record, so it is easier to track and spot red flags quickly.

What if checks are your only option?

Follow these tips:

1. Use permanent gel pens: Protect yourself by using permanent ink when writing a check. This will make check washing far more difficult for criminals to accomplish.
2. Avoid blank spaces: Ensure your check leaves no room for criminal alterations by filling out each line completely.
3. Withhold personal information. Don’t add personal information like your social security number, driver’s license details, or phone number to your check.
4. Review accounts: Regularly log on to your online banking platform (versus waiting for monthly paper statements) to quickly identify anything out of the ordinary.
5. Check your checks: Analyze your paid checks to ensure the amount is correct and the indorsement reflects the intended payee to guard against unauthorized deposits.

For more tips on how to spot fraud and protect yourself, visit 1stsecurity.bank/security.

*2024 findings from the Diary of Consumer Payment Choices, Federal Reserve Financial Crimes Enforcement Network, Suspicious Activity Report Statistics.