Check fraud 101: What it is and how to stop it

Fraud associated with check payments is on the rise, and can have devastating impacts on financial institutions and their business and consumer accounts. As fraudsters and cybercriminals become more sophisticated, institutions must remain hyper aware and proactive in safeguarding their assets and end users in digital banking solutions. In this blog, we’ll explore the basic concepts of check fraud, share key industry trends and highlight solutions such as Positive Pay designed to help your institution and your account holders stay ahead of emerging risks.

What is check fraud?

Check fraud is a form of financial crime where someone illegally manipulates or uses checks to trick others into giving them money or valuable goods. This can happen in various ways, such as writing checks from bank accounts that don’t have enough funds, forging someone’s signature, or altering the amount on a check after it’s been written. Some criminals even go as far as creating counterfeit checks that look real, making it harder to Spot the scam. The consequences of check fraud can be serious, resulting in significant financial losses for both individuals and businesses. As technology advances, fraudsters continue to develop new tactics, which makes it essential for financial institutions and law enforcement to stay vigilant and protect against these deceptive practices.

 

continue reading »