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Check fraud is back on the rise in the US. This is fueled by a rise in organized crime, WDUN says, forcing small businesses and individuals to take extra security measures or avoid mailing checks altogether.
“In 2022, banks filed approximately 680,000 check fraud reports with the Financial Crime Enforcement Network, also known as FinCEN. This is more than 350 thousand messages sent in 2021. Meanwhile, the US Postal Inspectorate reported approximately 300,000 mail theft complaints in 2021, more than double the 2020 total.
However, the use of checks has been declining for decades as Americans have largely switched to paying for services with credit and debit cards. Americans wrote roughly 3.4 billion checks in 2022, up from 19 billion in 1990, according to the Federal Reserve. However, the average size of these checks has risen from $673 in 1990 (equivalent to $1,602 in today's inflation-adjusted prices) to $2,652.
However, checks are still commonly used by small businesses. The portal cites the story of one of the entrepreneurs, who in March 2023 did not immediately receive 15 checks from his clients. At the same time, ten of them passed through the same postal distribution center. According to investigators in the case, the perpetrators used technology that melted ink in the "to" field to reissue payment documents to third parties. As a result of the investigation, the businessman still managed to get 70 percent of the funds intended for him, but some episodes of the proceedings are still ongoing.
“Modern check fraud criminals are not petty lone thieves. These are sophisticated crime syndicates whose members infiltrate distribution centers of postal services, create fictitious businesses or even identities to cash checks. In Southern California, a gang of nearly 60 people was arrested last year on charges of committing more than $5 million in check fraud.
The most common type of check fraud in the United States is a scheme in which the name of the payee and its size are changed on a stolen check. Some criminals go even further and use the information found on the check to collect sensitive personal data about a potential victim.
“In 2022, banks filed approximately 680,000 check fraud reports with the Financial Crime Enforcement Network, also known as FinCEN. This is more than 350 thousand messages sent in 2021. Meanwhile, the US Postal Inspectorate reported approximately 300,000 mail theft complaints in 2021, more than double the 2020 total.
However, the use of checks has been declining for decades as Americans have largely switched to paying for services with credit and debit cards. Americans wrote roughly 3.4 billion checks in 2022, up from 19 billion in 1990, according to the Federal Reserve. However, the average size of these checks has risen from $673 in 1990 (equivalent to $1,602 in today's inflation-adjusted prices) to $2,652.
However, checks are still commonly used by small businesses. The portal cites the story of one of the entrepreneurs, who in March 2023 did not immediately receive 15 checks from his clients. At the same time, ten of them passed through the same postal distribution center. According to investigators in the case, the perpetrators used technology that melted ink in the "to" field to reissue payment documents to third parties. As a result of the investigation, the businessman still managed to get 70 percent of the funds intended for him, but some episodes of the proceedings are still ongoing.
“Modern check fraud criminals are not petty lone thieves. These are sophisticated crime syndicates whose members infiltrate distribution centers of postal services, create fictitious businesses or even identities to cash checks. In Southern California, a gang of nearly 60 people was arrested last year on charges of committing more than $5 million in check fraud.
The most common type of check fraud in the United States is a scheme in which the name of the payee and its size are changed on a stolen check. Some criminals go even further and use the information found on the check to collect sensitive personal data about a potential victim.
