The State of Check Fraud in 2024<\/h2>\n\n\n\n
Unfortunately, check fraud is more common than ever. From 2014 to 2022, the <\/span>U.S Financial Crimes Enforcement Network (FinCEN) <\/span><\/a>tracked the number of Suspicious Activity Reports (SARs) filed by depository institutions to report potential check fraud. During this time, they saw a 158% increase in reporting. <\/span><\/p>\n Again, check fraud can impact both individuals and businesses. In fact, according to the <\/span>2024 AFP Payments Fraud and Control Survey Report<\/span><\/a>, 80% of organizations were victims of payment fraud attacks or attempts in the last year. Diving deeper into these values, the researchers report that 65% of respondents faced check fraud attacks, and overall, 30% were unable to recover the lost funds. <\/span><\/p>\n\n\n\n Though fraudsters\u2019 tactics are becoming more sophisticated and instances of fraud are on the rise, depository institutions, businesses, and consumers can take appropriate action to safeguard themselves against these attacks. <\/span><\/p>\n Checks are still a widely used payment method, and they can be safely used with the proper precautions. As a consumer, here are some things you can do to avoid being a victim of check fraud: <\/span><\/p>\n\n\n\n When you receive a check, the first thing you should do is verify that the bank listed as the issuing institution is legitimate. Otherwise, this could be a sign that the payer made a counterfeit check using a fake bank name. This BankFind<\/a> tool allows you to quickly search for FDIC-insured institutions in the United States. <\/p>\n\n\n\n Before depositing or cashing a check, ensure it\u2019s written for the amount you\u2019re expecting. For example, if you sell something using an online marketplace, the \u201cbuyer\u201d may purposefully send you a check amount over the asking price and will ask you to refund the balance, though this is typically a scam. <\/p>\n\n\n\n Most checks contain security features such as a watermark and security threads. Though fraudsters may attempt to replicate these features, they often cannot do so accurately. Upon receiving a check, verify that it contains these common features. <\/p>\n\n\n\nHow to Detect and Prevent Check Fraud<\/h2>\n\n\n\n
Verify the Issuing Bank<\/h3>\n\n\n\n
Verify the Check Amount<\/h3>\n\n\n\n
Verify the Security Features<\/h3>\n\n\n\n
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