Beware of Check Fraud: Why Paper Checks Are Still A Top Fraud Target

See how checks are exploited and learn how to prevent fraud from happening to you.

Checks feel old-fashioned, which is exactly why they are still such a good target. A single check hands over your name, your address, your bank, your account number, and your routing number, all in one piece of paper that travels through the mail unprotected.

The numbers back it up. In the 2026 AFP Payments Fraud and Control Survey, 58% of organizations said checks were the payment method most affected by fraud in 2025, ahead of ACH debits at 30% and wire transfers at 25%. Nasdaq Verafin estimates that losses related to check fraud in the U.S. reached $33.6 billion in 2025 alone. 

Here is how check fraud actually works, what to do if you still write checks, and which payment methods are safer.

How Checks Are Exploited

Most check fraud starts in a mailbox. FinCEN's analysis of bank reports on mail theft-related check fraud found that once a check is stolen, it usually goes one of three ways: 44% were altered and deposited, 26% were used as templates to create counterfeit checks, and 20% were fraudulently signed and deposited.

• Check Washing: Criminals use chemicals to erase the ink or check, then rewrite the payee and the amount. The FBI notes that washing typically targets the original payee and dollar figure, leaving your signature intact so the check still looks legitimate.‍
• Check Cooking: This is the digital version. A stolen check is photographed and edited with off-the-shelf software, then reprinted. The FBI warns that a single check image can be used to manufacture many checks, often written for small amounts so they escape scrutiny and go undetected longer.‍
• Forged Endorsements: Sometimes the check is not altered at all. It is simply signed over and deposited by someone who is not the payee, frequently through an account holder recruited or paid by the fraudster.‍
• Stolen data: Even if the check itself is never cashed, the account and routing numbers printed on it are enough to attempt other fraud against your account. A fraudster can take this information and create counterfeit checks to send out money from your bank account or even sell your personal data for others to do so.

The scale is not small. FinCEN received 15,417 reports on mail theft-related check fraud in a six-month window, tied to more than $688 million in suspicious activity, with an average of $44,774 reported per filing. At ConnectOne, we believe protecting our community means helping you see the risk clearly and giving you better options. 

If You Still Write Checks

Checks are hard to abandon. In the same AFP survey, 72% of organizations using checks said they plan to keep using them, and 68% pointed to vendor requirements as the reason. If checks are part of how you pay, these habits cut your risk:

• Use indelible black ink. The FBI specifically recommends pens with indelible black ink because that ink is much harder to wash off. A black gel pen is the easy version of this rule.
• Leave no blank space. Fill in every field and draw a line through unused space on the payee and amount lines so nothing can be added after you sign.
• Skip the blue mailbox when you can. The FBI recommends using the letter slots inside your local post office, and if you do use a blue collection box, dropping mail close to the posted pickup time and before the last collection of the day.
• Keep sensitive details off the memo line. No Social Security numbers, no account passwords, no full account numbers.
• Watch your incoming mail. USPS Informed Delivery is a free service that emails you daily images of the mail scheduled to arrive. If a check or statement never shows up, you know quickly rather than months later.
• Ask your bank about Positive Pay. For businesses, this service matches checks presented for payment against a list you provide, so anything altered or unfamiliar gets flagged before it clears.
• Reconcile often. Fraudulent checks written for small amounts are designed to blend in. Reviewing your account regularly is what catches them.

Safer Payment Methods

• Online Bill Pay: Payments are initiated from inside your banking portal, so your account and routing numbers are never printed on anything that travels through the mail. This removes mail theft and check washing from the equation entirely.
• ACH Payments: Electronic transfers between accounts, with no paper to intercept. Worth asking vendors about, since vendor preference is the main reason most businesses stay on checks.
• Mobile Wallets: Apple Pay, Google Pay, and Samsung Pay use tokenization, which replaces your card number with an encrypted token that is useless to anyone who intercepts it. Each transaction also requires your fingerprint, face, or passcode.

If You Think A Check Was Stolen

• Call your bank first. Ask for copies of the fraudulent checks and place stop payments or holds as needed. Speed matters here.
• Report mail theft to the Postal Inspection Service at uspis.gov/report or 1-877-876-2455.
• File with the FBI at ic3.gov and file a local police report. Banks and insurers often require one.
• Keep the paperwork. Copies of the altered check, the deposit details, and your timeline will all be requested.

Modern tools and a few careful habits go a long way. If you suspect fraudulent activity on your account, contact us immediately.

Want to learn more about safe banking practices? Visit our Security Center for additional resources and tips.