Despite the rise of online banking and electronic payments, paper checks remain in use, and with that, a resurgence in paper check fraud is being observed.
The Financial Crimes Enforcement Network (FinCEN) has reported a significant increase in check fraud cases.
Joe Bernardo, global head of fraud and claim operations at Wells Fargo, highlights that check fraud has more than doubled in the past three years. In 2021 alone, there were 680,000 reported cases, a substantial rise from previous years.
Vulnerability of Paper Checks
Paper checks have not evolved in terms of security, making them an easier target for fraudsters.
Methods for acquiring checks range from theft during day-to-day transactions to sophisticated phishing scams.
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These tactics allow criminals to create counterfeit copies of checks or access bank account details.
Tips for Safeguarding Against Fraud
To mitigate the risks of paper check fraud, individuals are advised to adopt secure practices. These include using digital payment methods, employing non-erasable black gel ink for check writing, and mailing checks directly at U.S. post offices rather than using mailboxes.
The resurgence of paper check fraud is a reminder of the ongoing risks in financial transactions and the need for heightened vigilance and adoption of secure practices.
With information from: Fox Business