Key Takeaways:
- Experts emphasize not ignoring old-fashioned check fraud. The resurgence of check fraud and stolen mail increases the importance of vigilance in safeguarding personal and financial information.
- There is a large market for stolen checks on the dark web, where they can be sold and whitewashed, to change the payee name, or even to put your information on a blank check.
- Remaining aware of your mail, your checks, and financial assets and activity, is your most effective fraud prevention tool.
- At Texas Regional Bank, a service called Positive Pay allows business account holders to furnish a list of check numbers written by the business, which the bank can use when cross-referencing transactions.
- By taking proactive steps like regularly monitoring accounts, utilizing fraud prevention tools such as Positive Pay, and being cautious with personal information, people can better protect themselves from these threats
Check Fraud: Secure Your Mail to Protect Yourself
In an era dominated by digital banking, it’s easy to overlook more conventional threats that are almost commonplace, like check fraud. Yet this age-old crime is making a troubling comeback. From mail theft to phishing scams, criminals are exploiting weaknesses in the system, causing significant losses for businesses and individuals alike.
The resurgence of check fraud increases the importance of vigilance in safeguarding personal and financial information. Through education and tools like Positive Pay, ‘the people you know’ at Texas Regional Bank are equipping customers to fight back against check fraud.
Your Mail Is an Easy Target for Check Fraud
While online payment tools can be ripe for fraud, experts emphasize not ignoring old-fashioned check fraud. In fact, check fraud is on the rise again, increasing 84% in one year alone, according to 2022 numbers from the Financial Crimes Enforcement Network, a bureau of the U.S. Department of the Treasury that collects and analyzes information about financial transactions to combat financial crimes. This disturbing trend impacts businesses as well as individual account holders.
Cesar Suarez, Chief Banking Officer with Texas Regional Bank, said that a lack of prosecution has criminals looking at check fraud as a way to steal. “There is a massive amount of mail theft,” he said. “It can range from thieves stealing mail out of your mailbox, to internal fraud at a post office, to criminals targeting official blue USPS mailboxes, to entire mail trucks being stolen.”
The US Postal Inspection Service (USPIS) has reported a wealth of data to corroborate:
- In March 2024, the USPIS reported a 139% increase in high-volume mail theft from mail receptacles between FY 2019 and FY 2023, jumping from 20,574 reports in 2019 to 49,146 reports in 2023.
- In the same report, USPIS stated postal carriers experienced an 845% increase in robberies between the same period, with 64 letter carrier robberies reported in 2019 and 605 in 2023.
USPIS concludes both of these upward trends are “primarily due to financially motivated crimes like check fraud.”
Stolen Checks, The Dark Web, and You
“There is a large market for stolen checks on the dark web,” Suarez said, explaining that these stolen checks can then be whitewashed to change the payee name, or to put your information on a blank check.
The Evidence-Based Cybersecurity Research Group at Georgia State University found an average of 1,325 stolen checks for sale on the dark web every week during October 2021, more than double the rate seen in preceding months. These checks alone are worth an estimated $11.6 million to fraudsters – and this activity was found on just one of more than 60 known black markets.
Criminals also rely on account holders’ negligence to help get away with the crime: Because most banks have a 60-day window on disputes (some windows are just 30 days), fraud discovered after that timeframe has passed is outside of the bank’s protection policies. The business or individual holding the account would not be able to recover stolen funds.
Cesar Suarez
Your habits are your best security measure. Criminals count on you not watching your account well, not regularly checking charges, and not reviewing your monthly statement, or not having text alerts set up on your account.
How You Can Prevent Check Fraud
As with many forms of securing yourself and your financial information from fraud, vigilance in safeguarding personal and financial information is paramount. Criminals count on your carelessness or negligence. Remaining aware of your financial assets and activity is your most effective fraud prevention tool.
The list below are simple actions you can take to keep your information and financial assets safe.
- Watch your account well and regularly check your charges.
- Reviewing your monthly statements for unauthorized activity.
- Activate text alerts on your financial accounts to remain aware of large transactions.
- If you electronically deposit checks, ensure you shred them afterward.
- Keep all blank checks in a secure location.
If you have business accounts, additional fraud prevention tools are available to help ensure the safety of your funds as well. At Texas Regional Bank, a service called Positive Pay allows business account holders to furnish a list of check numbers written by the business, which the bank can use when cross-referencing transactions. This helps both parties ensure that only legitimate checks are authorized and processed.
Looking Forward
As financial fraud continues to evolve, it is clear that while checks may be slowly decreasing in usage, they are still a soft target for financial crime, and they pose significant risks. The rise in check fraud underscores the need for individuals and businesses to remain vigilant. By taking proactive steps like regularly monitoring accounts, utilizing fraud prevention tools such as Positive Pay, and being cautious with personal information, people can better protect themselves from these threats. ‘The people you know’ at Texas Regional Bank are playing a crucial role by offering education and support to help customers safeguard their hard-earned money in this increasingly complex financial landscape.
For more tips on cybersecurity and fraud prevention, visit the Security Archives – Texas Regional Bank.
