Quick Summary: Check fraud is still a growing financial threat, even as more payments move online. Stolen mail, altered checks, fake check scams, and online marketplace schemes can put personal banking information at risk. Knowing how check fraud happens and what warning signs to watch for can help you protect your money.

Check fraud may sound like an old financial crime, but it is still a serious and growing risk. While many payments now happen digitally, checks are still used for rent, gifts, business payments, bills, and other everyday transactions. Because checks include sensitive account information, one stolen or fake check can quickly turn into a larger financial problem.

How Check Fraud Happens

Check fraud happens when someone uses a check illegally to steal money or access personal and financial information. This can include stealing a check from the mail, changing the details on a real check, creating a counterfeit check, or convincing someone to deposit a fake check and send money back.

• A stolen check may be altered, copied, or used to gather account details.
• A fake check may look legitimate at first, especially if it includes a real business name or professional-looking design.
• A scammer may send a check for more than the expected amount and ask you to return the difference before the check clears.

Why Check Fraud Is Increasing

One reason check fraud continues to rise is mail theft. Fraudsters may steal checks from residential mailboxes, apartment mailrooms, or public collection boxes used for bills, rent, or gifts. Once they have the check, they may change the payee, increase the amount, or use the account details for additional fraud.

• Checks contain valuable information, including your name, address, financial institution, account number, and routing number.
• Scammers are using fake job offers, prize notifications, and online marketplace listings to make fraudulent checks seem believable.
• Online platforms can help scams spread faster and reach more people, especially when the offer appears urgent or too good to pass up.

Common Check Fraud Warning Signs

Check fraud can be difficult to spot right away because a deposited check may appear in your account before it fully clears. That makes it important to slow down, ask questions, and look for red flags before using money from an unfamiliar check. Watch for these warning signs:

• Someone sends you a check and asks you to send part of the money back.
• You receive a check for more than the agreed amount.
• A stranger or online buyer insists on paying by check and creates urgency.
• You notice missing mail, unexpected account activity, or checks that do not match your records.

Ways to Help Protect Yourself

A few simple habits can make a big difference in reducing your risk. If you still use checks, treat them like sensitive financial documents and take extra care when sending, storing, and reviewing them. You can also review FORUM’s Security & Safety Tips for more ways to protect your personal and financial information.

• Use secure digital payment options when possible, such as FORUM’s Online Bill Pay through CU Online.
• Avoid leaving outgoing checks in an unlocked mailbox for pickup.
• Review your account activity often with FORUM’s Online Banking or Mobile Banking App, and report anything suspicious right away.
• Never send money back from a check until you are confident it is legitimate and fully cleared.
• Keep blank checks, statements, and account information stored securely.

What to Do If You Suspect Check Fraud

If you think a check has been stolen, altered, or used fraudulently, act quickly. Review your recent transactions, set up alerts through CU Online or the FORUM Mobile Banking App, and contact FORUM right away if something does not look right. A few minutes of monitoring today can help prevent a much bigger financial headache later.

Frequently Asked Questions

What is check fraud?
Check fraud happens when someone illegally uses a check to steal money or gain access to personal and financial information.

Why is check fraud increasing?
Check fraud is increasing because criminals can steal checks from the mail, use the account details printed on checks, and create convincing scams through online channels.

Can a fake check appear to clear?
Yes. Funds may appear available before a check fully clears, which is why scammers often pressure people to send money back quickly.

How can FORUM members monitor accounts?
FORUM members can review account activity through online banking and the mobile banking app, set up account alerts, and contact FORUM if they notice suspicious activity.