Some of you reading this may have never even seen a paper check in person! But don't be naive - check fraud continues to be an ongoing threat and is one that's constantly evolving. According to the FBI, it is estimated that a total of $18.7 billion is lost to check fraud annually.

Despite the decline in use of paper checks in the US, FinCEN has reported a rise in criminals targeting the US Mail to commit check fraud since the Covid-19 pandemic. According to FinCEN, from March 2020 through February 2021, the United States Postal Inspection Service (USPIS) received 299,020 reports of mail theft. That was a 161% rise from the previous year. The Department of Treasury’s National Money Laundering Risk Assessment projects the continuation of the rise of mail theft-related check fraud .

There are certain steps you can take to help reduce the risk of loss due to mail theft-related check fraud.
  1. Get your mail promptly after delivery. Do not leave mail in your mailbox overnight.
  2. If you are expecting a check, contact the sender if you do not receive it in an appropriate amount of time.
  3. Utilize USPS Mail Hold if you plan to be out of town.
  4. Sign up for informed delivery to receive daily emails from the USPS of incoming packages and mail.
  5. Use the letter slots inside the Post Office when mailing checks or letters with sensitive information.
I would also advise business owners to consider their bank’s Positive Pay product to help detect and prevent check fraud and ACH origination to reduce the volume of mailed paper checks.

If you are a victim of bank fraud, reach out to your bank immediately. Request copies of all fraudulent checks available and contact local law enforcement.

At Gainey Business Bank, we understand security is paramount for our customers. Contact us to learn more about the products, services and processes we use to help safeguard both businesses and consumers alike. We are here to protect you!

S. Rachel Guerrero | VP – Treasury Management Sales
O: (480) 571-7697 | C: (480) 209-3941
8501 N Scottsdale Rd. Suite 120 | Scottsdale, AZ | 85253