Despite the decline in personal check usage over recent years, check fraud continues to be a growing threat, particularly for businesses. In 2023 and 2024, check fraud accounted for a significant portion of payment fraud losses, with financial institutions losing over $1.3 billion in the United States alone. Nearly half of organizations reported experiencing check fraud incidents, demonstrating that checks remain a prime target for criminals due to their prevalent use in business-to-business (B2B) transactions and vulnerabilities introduced by new technologies.

Check fraud persists and even rises because fraudsters exploit several factors:

While many consumers have shifted to digital payments, many companies continue to rely on checks for vendor payments, payroll, and other transactions, making checks lucrative targets.

Criminals use advanced printing technology to create counterfeit or altered checks that appear authentic.

The ability to deposit checks remotely through mobile apps and scanners can be manipulated by depositing the same check multiple times or depositing fake checks.

Fraudsters create fake identities by combining real and fabricated personal information to open bank accounts and deposit counterfeit checks, further increasing losses.

According to the Federal Trade Commission, recognizing and avoiding fake check scams involves vigilance:

If you receive a check from someone you don’t know or for more than you expect, investigate before cashing.

Scammers often ask you to deposit a fake check and wire money back or buy gift cards. They may pressure for quick action.

Contact the company or person who supposedly issued the check to verify its legitimacy.

Even if a check initially appears to clear, it can later bounce and result in financial loss.

If you suspect you have received a fake check, reach out to us, and report it promptly to authorities such as the FTC.

Business customers concerned about check fraud should consider implementing Positive Pay services through AB&T’s Treasury Management team. Positive Pay is a fraud prevention tool that matches the checks a company issues against those presented for payment by the bank. Any discrepancy triggers an alert, allowing the business to review and stop unauthorized or altered checks before they clear.

Our Treasury Management experts are ready to help you set up Positive Pay and other fraud mitigation services tailored to your business needs. Proactively managing your check payments with these tools significantly reduces your risk of falling victim to costly check fraud schemes.

Check fraud remains a persistent issue in 2025, especially for businesses. Understanding the risks, recognizing fake check scams early, and utilizing fraud prevention tools like Positive Pay are crucial steps to protect your assets and maintain financial security.