Author: Emmanuel Nmai, CAMS, CFE, Fraud Analyst

In 2023, check fraud losses in the Americas reached $21 billion, accounting for nearly 80% of global check fraud losses, according to Nasdaq. The information on checks gives criminals what they need to copy or forge them, and the problem is growing due to data on the dark web, mail theft, and better printing tools.

With the rise of criminals committing check fraud by targeting the U.S. Postal Service, check fraud is now considered the largest source of illicit proceeds in the United States and one of the nation’s most significant money laundering threats.

Those committing mail theft-related check fraud generally seek to steal personal, business, and government-issued checks, including tax refunds, Social Security payments, and unemployment benefits. While all types of checks are at risk, business checks are especially vulnerable as they typically have more funds, and fraudulent activity can go unnoticed for longer periods.

Some important things to know about check fraud, and how to prevent it:

It’s a big problem

• Check fraud remains one of the most common payment scams in 2025.
• Losses are rising due to both old-school mail theft and modern tech-enabled schemes.
• Always safeguard your checks by keeping them in a secure place, and shred old checks.

Scammers use better tools

• Criminals use AI tools, high-quality printers, and digital editing to make fake checks look real.
• Information stolen from checks is sold on the dark web, making forgery even easier.
• Consider setting up online Bill Pay through your financial institution to safely and securely send payments, avoiding the need to write or send physical checks.

Digital fraud is rising

• Digital manipulation of check images is harder to detect than physical alterations.
• Mobile check deposits are often misused. Scammers can deposit the same check multiple times at multiple institutions.
• Whenever possible, use online bill pay, wire transfers, or peer-to-peer money transfer apps (such as SPIN) to reduce your reliance on paper checks.

Mail theft is common

• Thieves target mailboxes and postal routes to steal checks.
• Always use secure mailboxes or bank drop boxes to send payments.

Act fast to protect your money

• Report unauthorized check activity immediately.
• Waiting too long can limit your ability to recover funds.

Protect yourself

• Turn on bank alerts.
• Review your bank statements regularly.

Protection for businesses

If you own a business, one of the most effective tool businesses can use to protect from check fraud is Positive Pay.

Positive Pay compares checks your business issues with the checks presented for payment, adding an extra layer of security. If anything looks off, such as the amount, check number, or payee, the item is flagged so you can decide whether to approve or decline it. This stops unauthorized or altered checks before they ever clear your account.

In addition to protecting checks, many businesses also use ACH Positive Pay, which offers the same level of control over electronic transactions. With ACH Positive Pay, you can set rules and filters that determine which companies are authorized to debit your account. If an incoming ACH doesn’t match those rules, you will receive an alert and can approve or reject the item before it posts. This helps prevent impersonation fraud and unauthorized ACH withdrawals, a trend that has grown significantly in recent years.

Together, these tools give business owners real-time visibility and control. Any item that doesn’t match your authorized list is sent to you immediately, helping you avoid unexpected withdrawals and keeping you in charge of what posts to your account.

Beyond security, Positive Pay streamlines your daily operations by reducing the time your staff spends manually monitoring activity. It automates a key part of your financial controls, allowing you and your team to stay focused on running the business.

If you suspect fraud, take action immediately

Contact your financial institution immediately to file a fraud report, contact local authorities to report what’s happened, and consider placing a fraud alert on your credit file. To place a fraud alert on your credit, contact any one of the three major credit bureaus: Equifax, Experian, or TransUnion.

Click here to learn more about credit freezes and fraud alerts.

If you’re a PremierBank customer and notice any suspicious activity on your account, call us at 920-563-6616 or stop by any banking location so that we can assist you.

To learn more about how to spot and prevent scams, click here.