In an increasingly digital world, check fraud remains a persistent and evolving concern. Criminals are primarily employing mail theft techniques to intercept checks and steal your hard-earned money. At Amerant Bank, your financial security is our top priority. Let’s explore the current landscape of check fraud and learn practical strategies to protect yourself and your business.
The Growing Trend of Check Fraud
The FBI and USPIS are warning that check fraud is on the rise, with a significant volume enabled through mail theft. Suspicious Activity Reports related to check fraud have nearly doubled from 2021 to 2023. Fraudsters take advantage of regulations requiring financial institutions to make check funds available within specified timeframes, which is often too short a window for the consumer or financial institutions to identify and stop the fraud. As a result, the compromised checks clear, and the funds are withdrawn by the criminal participants before the fraud is detected.
Methods Fraudsters Employ
Today’s fraudsters intercept checks before they reach their recipients’ mailbox, gaining access to sensitive personal and account information. Once they have a check, they employ various sophisticated techniques to alter or counterfeit them:
• Check washing: Using chemicals to erase information on legitimate checks
• Check “cooking”: Altering check details to change payment amounts or recipients
• Counterfeiting: Creating entirely fake checks using account information
• Forged endorsements: Depositing unaltered checks with fake signatures
The statistics paint a concerning picture. According to FinCEN’s Financial Trend Analysis, over 15,400 suspicious activity reports related to mail theft check fraud were filed during just six months in 2023, representing more than $688 million in suspicious activity.
2025 Outlook
Industry projections suggest check fraud could become even more sophisticated this year. With synthetic identity fraud and business email compromise tactics increasing, experts estimate potential losses could reach a staggering $30 billion if left unchecked—particularly as more businesses transition to digital banking environments.
Key emerging threats include:
• Advanced counterfeit checks: Modern printing technology enables criminals to produce nearly flawless counterfeits using legitimate bank routing and account information
• Remote Deposit Capture (RDC) fraud: While mobile check deposits offer convenience, they’ve opened new fraud opportunities, particularly “double presentment” fraud where the same check is deposited multiple times across different institutions.
RDC fraud alone accounted for $400 million in losses in 2023, with experts predicting this figure will rise in 2024.
Essential Tips to Protect Your Money and Identity
Individuals and businesses don’t have to become victims. Here are practical steps to safeguard finances:
1. Secure your mail: Drop outgoing mail directly at the Post Office and retrieve incoming mail daily to prevent theft
2. Consider alternatives to checks: Use wire transfers, ACH payments, and online bill pay services whenever possible
3. Verify receipt: Follow up to confirm check payments have reached their intended recipients
4. Use indelible ink: Write checks with black gel pens or other indelible ink that can’t be easily washed
5. Switch to eStatements: Enroll in electronic statements to prevent bank documents from being stolen in transit
6. Enable alerts: Take advantage of notification services through Amerant online banking to monitor account activity
7. Monitor regularly: Reconcile your accounts frequently to catch suspicious transactions early
Additional Protections for Business Customers
Business customers can consider enrolling in our Payee Positive Pay Service and ACH Fraud Control. These enhanced security features help prevent unauthorized checks and ACH transactions from being processed against your account. Contact an account officer for more information on implementing this valuable protection.
What to Do If Fraud Is Suspected
If you believe you’ve been defrauded:
• Contact Amerant Bank immediately
• Consider opening a new account and closing the compromised one to prevent future counterfeit checks
• File a report with local law enforcement
• Submit a report to the U.S. Postal Inspection Service if mail theft was involved
Protecting the Vulnerable
Fraud doesn’t just affect individuals—it impacts entire communities. Be especially vigilant in protecting vulnerable family and community members. Today’s fraudsters use sophisticated tools including printers, call spoofing technology, and even AI-assisted voice recreation to manipulate potential victims into becoming unwitting accomplices.
Your Security Partner
At Amerant Bank, we remain committed to safeguarding your financial well-being. By staying informed and implementing these preventative measures, you can significantly reduce your risk of falling victim to check fraud. Have questions about protecting your accounts? Contact your Amerant Bank representative today or visit the Security Center.
Source: Check Fraud Statistics: Fraudulent Checks Remain a Significant Threat in 2024 and Beyond – Advanced Fraud Solution
