The Growing Risk of Check Fraud – Protecting Your Finances

In today's digital age, check fraud continues to be a major issue for individuals and businesses alike. With check fraud on the rise, it’s important to understand how criminals commit this type of crime and what you can do to protect your finances.  

Check fraud is defined as a form of financial crime in which an individual or group attempts to unlawfully obtain money from someone else's account using counterfeit or altered checks. Criminals may also attempt to forge signatures on checks or use stolen checks with the intent of depositing them into their own accounts.  

Statistics show that check fraud has increased significantly over the past few years. According to the Financial Crime Enforcement Network (FinCEN), financial institutions filed more than 680,000 Suspicious Activity Reports of potential check fraud in 2022, nearly double the number of reports over the previous year. As technology advances and criminals become increasingly sophisticated, the risk of becoming a victim of check fraud is growing each year.  

One way you can protect yourself from falling victim to check fraud is by avoiding sending personal checks through the mail whenever possible.  

"It's best to avoid sending checks in the mail altogether; doing so can put your financial information at risk of check fraud.” says CPB Vice President and Director of Financial Crimes Security Thorsen Steen. “If the payment option is available, opt for digital payments through secure platforms that provide an extra layer of protection. Your vigilance is critical in avoiding the impact of fraud. Be sure to review your account activity daily. If you do spot fraudulent transactions, report them to us immediately. We’re here to help." 

It’s also important for organizations and individuals alike to stay up-to-date on best practices for security measures such as two-factor authentication, encryption and secure data storage solutions in order to help protect against unauthorized access or use of financial information. Finally, it’s important for both individuals and businesses alike to keep an eye out for any suspicious activity related to their accounts so they can take action quickly if necessary.  

Check fraud is a serious issue and one that is only expected to increase over time if proper steps are not taken by both individuals and businesses alike in order to protect against it. By understanding common methods used by criminals and taking appropriate steps such as avoiding sending personal checks through the mail whenever possible, you can help keep your finances safe from potential harm caused by fraudulent activity.  

For more information on how to keep your personal information safe, visit cpb.bank/privacy-security/identity-theft.