Understanding Check Fraud

Check fraud continues to rise as criminals develop more advanced ways to steal money and personal information. These schemes can affect individuals and financial institutions alike, making awareness and prevention more important than ever. This page explains what check fraud is, how it happens, and what steps you can take to reduce your risk.

What Is Check Fraud?

Check fraud occurs when someone illegally uses a check to obtain funds or property. Criminals may steal legitimate checks, change their details, or produce fake checks using stolen account information. Common tactics include chemically removing ink from checks to alter payee names or amounts, as well as digitally manipulating check images. Fraudulent checks are often deposited by unsuspecting individuals or passed along to other criminals, resulting in financial losses, delayed payments, and identity theft.

How Does Check Fraud Happen?

Fraudsters use a variety of methods to carry out check fraud, including:

  • Mail Theft: Taking checks from residential mailboxes, collection boxes, or during mail transit.

  • Mailbox Fishing: Using tools or sticky materials to pull mail from postal collection boxes.

  • Counterfeit Checks: Creating fake checks using stolen routing and account numbers.

  • Altered Checks: Modifying the dollar amount, payee name, or other details on a legitimate check.

  • Forged Endorsements: Signing and depositing or cashing a check made out to someone else.

Check fraud remains one of the most common forms of payment fraud. Industry reports show that a large majority of organizations experienced attempted or successful payment fraud in recent years, with checks cited as the most frequently targeted payment method. Financial institutions have also reported a significant increase in check-related suspicious activity filings.

Think You May Be a Victim of Check Fraud?

If you believe you’ve been affected by check fraud, act quickly. Prompt reporting can help limit financial losses and prevent further misuse.

  • Contact your financial institution immediately to report the activity.

  • Report consumer fraud to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov.

  • For online or internet-related fraud, file a report with the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov.

  • You may also contact your local police department or your state attorney general’s office.

You may be asked to complete a forgery affidavit and provide details about the incident, including copies of checks or account statements. This information helps financial institutions and law enforcement investigate and respond appropriately.

How to Help Protect Yourself from Check Fraud

While no method is foolproof, these steps can help reduce your risk:

  • Use Electronic Payments When Possible: Digital and mobile payment options are generally more secure than paper checks.

  • Mail Checks Carefully—or Avoid Mailing Them: If you must mail a check, use secure drop-off locations like a post office rather than a home mailbox.

  • Set Up Account Alerts: Transaction alerts can help you quickly spot suspicious activity on your account.

  • Write Checks with Gel Ink: Non-erasable gel ink is harder to alter than standard ink.

  • Review Your Accounts Regularly: Monitor statements and transactions for anything unfamiliar.

  • Dispose of Documents Securely: Shred old checks, bank statements, receipts, and any paperwork containing personal or financial information.

Protecting your financial information requires ongoing awareness and proactive habits. By staying alert, safeguarding your personal data, and choosing secure payment options whenever possible, you can help reduce your exposure to check fraud.

If you would like more information, please contact us directly at (413) 592-9495 or contactcenter@pncu.com.