With so few people writing checks nowadays, how is fraudulent activity more prevalent than ever? Check fraudsters thrive on two vulnerabilities that come with check-writing: opportunity and anonymity.
When you send a check in the mail, scammers have an opportunity to access that document while it’s out of your sight—from the moment it goes into the mailbox to the time it gets deposited by the recipient. Along the way, it can pass through many hands, mailboxes, sorting facilities, mailrooms, and processing centers. Each additional stop creates another opportunity for a check to be lost or stolen before it reaches its intended destination.
After a scammer has taken advantage of that opportunity, anonymity comes into play. They might not be your original payee, but nobody knows that. Traditionally, check fraudsters have honed check “washing” routines—taking your physical check and using cleaning solvents, chemicals and good old-fashioned elbow grease to fade or remove your writing. They can then replace the real information with new information, like a different name or a larger dollar amount, and ultimately cash or deposit it themselves.
Even trickier, they can also imitate you as the check writer. Thanks to technology, fraudsters can “cook” checks—copying and modifying them digitally—with some even selling stolen and edited blank checks online. Regardless of how they do it, it only takes one stolen check for a scammer to have your name, contact information, routing number and account number.
So, what can you do?
Consider your check’s final destination. Processing centers across the country can create opportunities for fraudulent activity—not because your specific vendor is to blame, but because large volumes of checks arriving and passing through many hands create additional opportunities for theft. In addition, when your check arrives hundreds of miles away from home, it is literally out of your hands. One way to avoid this is to take advantage of your payee’s paperless billing and electronic payment options when available.
Use your bank’s online banking features. Digital bill pay, automatic payment options, and account-to-account transfers can reduce the number of physical checks you have to write and mail. This keeps your payment from passing through those extra hands.
Stopping scammers works best when you and your bank work together. Online account access makes it easier to monitor your balance and transactions regularly. Coupled with your bank’s fraud detection systems, keeping an eye on your account through your bank’s app can help you notice suspicious activity quickly. Alerting your bank as soon as something looks wrong can help protect your money and stop the scam from going any further.
Remember the advantage of banking locally. Believe it or not, another line of defense between your money and scammers is happening at your community bank in real time. When you attend local football games, church, school, and community activities alongside the folks who work at your bank, you have the benefit of familiarity.
Fraudsters may thrive on anonymity, but banking locally gives you the opportunity to be known. The people at your local branch may recognize when a transaction or request doesn’t fit your normal habits, and when something doesn’t seem right, they can ask questions.
Technology has given fraudsters new ways to take advantage of people, but it has also given banks and customers new ways to fight back. Reducing opportunities for scammers, monitoring your accounts, and maintaining a relationship with your bank can make it much harder for a fraudster to take advantage of anonymity.
By Quentin McConkey, CFE Security Officer, BTC Bank
About BTC Bank
BTC Bank is a Missouri‑based community bank established in 1919. As Missouri’s number one agriculture bank, with more than $1.8 billion in assets, BTC Bank delivers trusted financial solutions and exceptional customer service across 30 branches in Missouri, Iowa, and Arkansas. With local decision-making at its core, BTC Bank provides personalized financial services designed to support farmers and agribusiness, empower youth, and strengthen the long-term vitality of the communities it serves.
BTC Bank is a Missouri‑based community bank established in 1919. As Missouri’s number one agriculture bank, with more than $1.8 billion in assets, BTC Bank delivers trusted financial solutions and exceptional customer service across 30 branches in Missouri, Iowa, and Arkansas. With local decision-making at its core, BTC Bank provides personalized financial services designed to support farmers and agribusiness, empower youth, and strengthen the long-term vitality of the communities it serves.