How Check Fraud Affects Small Banks and Consumers

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In 2023, nearly 700,000 cases of possible check fraud were reported, which, according to the U.S. Treasury Department, equaled billions of dollars in losses.

Check fraud affects everyone, but it’s also really hurting small community banks. But how does check fraud work, and how can we stop it?

How Check Fraud Works

Thieves go through mailboxes and steal checks. They can be any type of check like:

• personal checks
• business checks
• government program checks (like Social Security)

Business checks are the most vulnerable since they have bigger pockets than personal checks.