Check fraud

Check fraud is surprisingly widespread and common. Though online payments have grown in popularity, millions of people still use paper checks to make transactions. This form of payment is particularly vulnerable because it can be physically stolen.

And according to consumer advocates, it continues to be a fast-growing type of crime.

The good news is that understanding what check fraud is and how it happens can help you protect your money.

Simply put, check fraud happens when someone uses checks illegally to steal money or gain access to personal and financial information. This can look like someone stealing a check from a mailbox to access personal information or convincing someone to deposit a fraudulent check.

According to America Saves, a campaign managed by the Consumer Federation of America, check fraud continues to rise because of mail theft. Residential mailboxes, apartment mailrooms and mail collection boxes are often targeted for rent or utility bill checks. A stolen check can be altered, copied or used to access personal banking information.

Checks contain the name of the author, their address, their signature, and their account and routing number. This information can be used to create a fake check.

Fraudulent or fake checks often look like real checks – and some might even be real – except they are made with fake information or real information stolen from someone else. It can take weeks for a bank to figure out if a check is fake. Those who are convinced to deposit the fake check can lose money as a result.

Victims of check fraud face financial loss and stress, and can spend time trying to resolve the fraud. For some, a temporary loss of funds can create serious challenges.

Protect yourself

Changing a few habits to ensure you are using checks carefully can help you prevent check fraud. America Saves recommends the following tips:

• Mail checks from secure locations, like inside the post office
• Avoid leaving outgoing mail in your mailbox overnight
• Review your bank account regularly
• Set up transaction alerts through your financial institution
• Be cautious of checks connected to job offers, prizes, or urgent requests
• Contact your financial institution quickly if something feels wrong

The Federal Trade Commission and America Saves have more information to help you stay prepared. And if you’re ever unsure about the legitimacy or origin of a check, you can reach out to Everence Federal Credit Union for guidance.