Check fraud is a growing concern in the banking sector. Scammers are becoming increasingly sophisticated in their methods, making it essential for people to be vigilant and proactive in protecting themselves. This article helps explain what check fraud is, how it occurs, and provides practical tips to help safeguard against it.

Check fraud involves the illegal use of checks to obtain money or property. Fraudsters may steal checks from the mail, alter them, or create counterfeit checks using stolen account information. Common methods include check washing (chemically erasing details) and check cooking (digitally modifying check images). These fraudulent checks are then deposited by recruited individuals or sold to other criminals, leading to financial losses, theft, and payment delays.

Scammers commit check fraud using multiple methods, including:

• Mail Theft: Stealing checks from your mailbox, collection boxes, or even postal carriers.
• Fishing: Using sticky substances to reach into collection boxes and retrieve your mail.
• Counterfeit Checks: Stealing account information and creating fake checks.
• Altered Checks: Changing the information on a check, such as the dollar amount or payee information.
• Forged Endorsements: Signing the back of a check made out to someone else and cashing it for themselves.

Check fraud remains a significant issue for individuals and banks. According to the "2024 AFP Payments Fraud and Control Survey Report," 80% of organizations reported attempted or actual payments fraud in 2023, up from 65% in 2022. Checks continued to be the most problematic payment method, with 65% of organizations reporting check fraud activity. Additionally, the report noted a 40% increase in check-related Suspicious Activity Reports filed with the Financial Crimes Enforcement Network (FinCEN).

If you think you’ve been victimized by a fraudster, time is critical. Report it immediately by calling 1-800-724-2440.

Contact the Federal Trade Commission (FTC) at ReportFraud.ftc.gov for general consumer fraud, the FBI's Internet Crime Complaint Center (IC3) at ic3.gov for internet-related crimes, or your local police department or your state attorney general's office. 

You will likely be asked to file a declaration of forgery, and provide detailed information about the fraud incident, including any documentation you can provide. This information will be provided to law enforcement authorities so that they can take the appropriate actions.

To help protect yourself from check fraud, consider the following tips:

1. Use Digital Payment Options: When possible, use online and mobile banking instead of checks, which can be easily stolen.
2. Mail Checks Securely, or Not at All: Send checks through secure methods, such as mailing them at the post office rather than from your home mailbox. Again, if possible, don’t mail or use checks at all.
3. Set Up M&T Alerts: Be notified of suspicious activity by getting set up with services like M&T Alerts. Learn More >
4. Use Non-Erasable Gel Ink: If you do need to write a check, be sure to use non-erasable gel ink, which is harder for fraudsters to tamper with.
5. Monitor Your Accounts: Be diligent! Review your bank statements regularly for unauthorized transactions.
6. Shred Personal Documents: Scammers can use old checks, ATM receipts, statements, and other documents to find your information. Shred any documents with personal information and be sure to dispose of them in a safe manner.

Your privacy and security matter, and protecting yourself against scams like check fraud requires vigilance and being proactive. Help safeguard yourself against check fraud: Monitor your accounts, protect your information, and use secure payment systems as often as you can.

For more information about how you can protect your accounts, visit our Banking Fraud and Security Center. Learn More >