Keep a check on check fraud

Sure, check use is on the decline. But check fraud isn’t. In just the last three years, check fraud has more than doubled.

Even though digital payment options are on the rise, checks are still the form of payment most accepted by small businesses and Uncle Sam. The US Treasury alone sent out around 45 million checks in 2023.

Check fraud can take many forms. You might be the victim of it on a blank check, a check you wrote, or a check for which you are the intended recipient.

Knowing the various ways check fraud can occur, what you can do to prevent check fraud, and what to do if you suspect check fraud are three ways to keep a check on check fraud.

What it can look like:

Stolen checks

Blank checks and completed checks can both be stolen — from a home, the mail, a business, anywhere. If the check is filled out, household chemicals can erase the ink, allowing new, fraudulent information to be added. While a bank branch would require an ID or ask questions before cashing a check, an ATM or currency exchange may allow any check to be cashed.

Counterfeit checks

Fraudsters can make altered checks or use details from your checks, such as your account number and the bank’s routing number, to fabricate counterfeit checks.

Identity theft

A stolen check contains vital information even if it’s not used directly. Thieves can use the account holder’s name, intended recipient’s name, account information, or address to commit identity theft.

Unauthorized withdrawals

Even if a stolen check is never used, it can compromise your information. A fraudster possessing a check might exploit account details to withdraw funds.

What to do if you think a check has been lost or stolen:

1. Contact your bank to request a stop payment if you wrote the check.
2. Contact the check writer if you are the recipient so they can put a stop payment on it.
3. Let a business or institution know if fraudulent activity started because of a check written to them.
4. Put a hold on the checks to prevent use.
5. Notify your bank of any unauthorized withdrawals.
6. Consider closing your checking account.
7. Secure accounts by changing passwords and PINs and selecting new security questions. Consider doing this for all your financial accounts, not just the checking account impacted.
8. Monitor accounts and credit reports for signs of identity theft, new accounts being set up, or suspicious transactions.
9. Sign up for credit monitoring to automatically receive your credit reports.
10. Set up fraud alerts through your bank or credit card company to receive notifications about suspicious transactions.
11. If you suspect criminal activity, file a police report to create a record of the theft.
12. Report the theft and fraud to the FTC.

How you can stay safer when using checks:

1. Keep personal and financial information and paperwork — like account statements and checks — private and secure.
2. Shred account documents and checks when it’s time to dispose of them.
3. Use Online Bill Pay, Zelle®, or credit cards when possible, as these options offer more protection.
4. Don’t give away blank checks or allow access to your checkbook.
5. Regularly review your accounts for unusual transactions or activity.
6. Take advantage of the annual free credit reports from major credit bureaus.

Check Protection for Business Owners

Fremont Bank proudly offers Positive Pay, which compares incoming checks and ACH items against your issue information. This powerful online tool helps prevent fraud and unauthorized transactions – protecting your business and your clients. Learn more about Positive Pay.

Other easy ways you can stay safe online include using strong passwords and following our other tips. Curious about how we protect accounts and personal information? Learn how Fremont Bank protects you.