Check fraud remains a persistent and evolving concern in an increasingly digital world. Criminals employ mail theft techniques to intercept checks and steal 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
Both the FBI and USPIS warn that check fraud is rising, with a significant volume of fraud enabled by 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, often too short for the consumer or financial institutions to identify and stop the fraud. As a result, the compromised checks clear, and the criminal participants withdraw the funds before the fraud is detected.
The 2025 Association for Financial Professionals (AFP®) Payments Fraud and Control Survey Report identifies checks as the payment method most susceptible to fraud, with 63% of respondents reporting attempted or actual check fraud in 2024. Despite the risk, checks remain a favored payment method among the surveyed organizations — 91% reported using them, and more than 75% have no immediate plans to stop using them. The survey concludes that most organizations are not yet deterred from using checks even though they are aware of the risks.
In its analysis of the Financial Trend Analysis (FTA) report, FinCEN identified three primary outcomes after checks were stolen from the U.S. Mail: (a) 44 percent were altered and then deposited; (b) 26 percent were used as templates to create counterfeit checks; and (c) 20 percent were fraudulently signed and deposited. Check manipulation methodologies ranged in sophistication, and many perpetrators tried to avoid interaction with bank personnel. FinCEN also found that banks filed 88 percent of all mail-theft-related check-fraud reports. Additionally, analysis revealed that financial institutions reported transactional activity or BSA filing subjects linked to every U.S. state, Washington, D.C., and Puerto Rico. While every state was affected, populous states with large urban areas had more reported incidents.
Mail theft-related check fraud losses can affect personal savings, checking accounts, business accounts, and retirement savings, and can also negatively impact financial institutions that typically cover these losses.
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 techniques to alter or counterfeit it:
- 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.
Outlook and Emerging Trends
Industry projections suggest that check fraud could become even more sophisticated this year. With synthetic identity fraud, business email compromise, and the use of artificial intelligence on the rise, experts estimate that potential losses could rise significantly, particularly as more businesses transition to digital banking environments.
Key emerging threats include:
Remote Deposit Capture (RDC) fraud: While mobile check deposits offer convenience, they have also created new fraud opportunities, including “double presentment” fraud, where the same check is deposited multiple times across different institutions, and the ability to deposit fraudulent checks without any interaction with bank personnel.
Advanced counterfeit checks: Advanced printing technology and the utilization of AI, enables criminals to produce nearly flawless counterfeits using legitimate bank routing and account information.
B2B Vulnerability: Business-to-business transactions are highly targeted, with 65% of organizations reporting check fraud activity.
Essential Tips to Protect Your Money and Identity
Individuals and businesses don’t have to become victims. Here are practical steps to safeguard finances:
- Secure your mail: Drop outgoing mail directly at the Post Office and retrieve incoming mail daily to prevent theft.
- Consider alternatives to checks: Use wire transfers, ACH payments, and online bill pay services whenever possible.
- Verify receipt: Follow up to confirm check payments have reached their intended recipients.
- Use indelible ink: Write checks with black gel pens or other indelible ink that can’t be easily washed.
- Switch to eStatements: Enroll in electronic statements and other digital documents to reduce the risk of bank information being stolen in transit.
- Enable alerts: Use Amerant Online Banking’s notification services to monitor account activity.
- Monitor regularly: Reconcile your accounts frequently to identify suspicious transactions early.
Additional Protections for Business Customers
Business customers should consider enrolling in our Payee Positive Pay and ACH Fraud Control services. These enhanced security features help prevent unauthorized checks and ACH transactions from being processed against your account. For more information on implementing these valuable safeguards, please contact your account officer.
What to Do If Fraud Is Suspected
If you believe you’ve been defrauded:
- Contact Amerant Bank immediately.
- Consider closing the compromised account and opening a new one to prevent future counterfeit checks from posting.
- File a report with local law enforcement.
- If mail theft was involved, submit a report to the U.S. Postal Inspection Service.
Protecting the Vulnerable
Fraud affects individuals and entire communities. Be especially vigilant in protecting vulnerable family and community members. Today’s fraudsters use sophisticated tools, such as high-end 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.
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