By: Tim Van Derlike, Risk Management Officer/VP
Protecting Your Money Starts with Knowing What to Look For
Checks remain a trusted way to pay bills, send gifts, and manage everyday finances. Unfortunately, they're also becoming an increasingly common target for criminals. In 2024, the U.S. Department of the Treasury reported that financial institutions identified more than $688 million in suspected mail theft-related check fraud in just six months.
Understanding how check fraud works is one of the best ways to protect yourself and your finances. At Finger Lakes Credit Union, we're committed to helping you stay informed so you can bank with confidence.
What Is Check Fraud?
Check fraud occurs when someone illegally uses a check to steal money or gain access to personal or financial information.
Common examples include:
- Stealing checks from the mail
- Altering the amount or payee on a legitimate check
- Creating counterfeit checks
- Using fake check scams to convince someone to deposit a fraudulent check and send money back
A stolen check can provide criminals with more than just the value of the payment. It often contains sensitive information, including your name, address, financial institution, account number, and routing number—information that can be used for additional fraud.
Why Is Check Fraud Increasing?
One of the biggest drivers of check fraud is mail theft. Criminals often target residential mailboxes, apartment mailrooms, and public mail collection boxes looking for outgoing payments such as rent checks, utility bills, or greeting cards containing checks.
Once a check is stolen, it can be altered, duplicated, or used to access your banking information. What begins as a single stolen payment can quickly become a much larger financial issue.
Why Checks Are Valuable to Criminals
A paper check contains a significant amount of personal and financial information in one place. In addition to the payment itself, checks often display:
- Your full name
- Your address
- Your financial institution
- Your account number
- Your routing number
If this information falls into the wrong hands, criminals may attempt to create counterfeit checks, withdraw funds, or commit other forms of identity or financial fraud.
Watch Out for Fake Check Scams
Not all check fraud starts with stolen mail.
Scammers frequently use fake job offers, prize notifications, online marketplace purchases, or overpayment scams to send you fraudulent checks to deposit. They then pressure victims to send money back before the original check is discovered to be fake.
These scams often create a false sense of urgency and can appear very convincing. Social media, online job boards, and digital marketplaces have made it easier than ever for scammers to reach potential victims—especially younger adults and first-time workers.
Remember: Just because deposited funds appear in your account doesn't mean a check has fully cleared. If the check is fraudulent, the deposit is reversed and then you could be responsible for the money you sent.
Red Flags of a Fake Check Scam
If you notice any of these warning signs, take a moment to verify the situation before taking action.
- You're asked to send money back after depositing a check
- The payment you’ve received is for more than the amount expected
- Someone pressures you to act immediately
- The check is tied to a job offer, prize, sweepstakes, or online sale that seems too good to be true
- You're told the funds are "guaranteed" before the check has fully cleared
- The sender asks you to pay using gift cards, wire transfers, cryptocurrency, or payment apps!
When something feels rushed or unusual, it's worth asking questions. Taking a little extra time today can help prevent a much bigger problem tomorrow.
Who Is Most at Risk?
Anyone who writes or receives checks can become a victim of check fraud. However, certain groups may face a higher risk.
- Households that pay bills by check
Rent payments and mailed bills are often predictable and for larger dollar amounts, making them attractive targets for thieves. - Small business owners
Businesses frequently mail checks for payroll, vendors, and operating expenses, increasing their exposure to mail theft and check fraud. - Older adults
Many older adults continue to use checks for bills, gifts, and charitable donations. Regular use of the mail can increase the risk of stolen checks. - Families with shared accounts
When multiple people access the same account, suspicious activity may be harder to notice if statements and transactions aren't reviewed regularly. - Younger adults and first-time workers
While they may write fewer paper checks, younger adults are often targeted through fake job offers, prize scams, and online marketplace fraud that involve counterfeit or electronic checks.
Why Check Fraud Can be Costly
Check fraud can affect much more than your account balance. Victims may experience:
- Unauthorized withdrawals
- Delayed bill payments
- Missed rent or utility payments
- Overdraft fees
- Frozen accounts
- Hours spent resolving fraudulent activity
For many families, even a temporary loss of funds can create unnecessary stress and financial hardship.
The more you understand how check fraud works, the better prepared you'll be to recognize warning signs and protect yourself.
Simple Steps to Protect Yourself
You don't have to stop using checks but using them carefully can significantly reduce your risk.
Here are a few simple habits that can help:
- NEVER give out your account numbers, online banking login credentials, or security codes sent to your email or cell phone.
- Mail checks from inside your local post office whenever possible
- Avoid leaving outgoing mail in your mailbox overnight
- Review your account activity regularly
- Set up account and transaction alerts through digital banking
- Be cautious of checks connected to unexpected job offers, prizes, or requests to send money back
- Contact Finger Lakes Credit Union immediately if you believe you've been affected by check fraud
Frequently Asked Questions About Check Fraud
What should I do if I think one of my checks was stolen?
If you believe a check has been stolen, contact Finger Lakes Credit Union as soon as possible. We can help you review recent account activity, discuss options for protecting your account, and determine whether additional steps, such as placing a stop payment or opening a new account, may be appropriate.
Can someone steal money with just my check?
Yes. A paper check contains valuable information, including your account and routing numbers, which criminals may attempt to use for fraudulent purposes. That's why it's important to monitor your account regularly and report suspicious activity right away.
What is a fake check scam?
A fake check scam occurs when someone sends you a fraudulent check and asks you to send money back before the check is discovered to be invalid. Even if funds appear in your account initially, you may still be responsible for repaying the money if the check doesn't clear.
How can I protect myself from check fraud?
You can reduce your risk by using the Credit Union’s Billpay service to pay bills, mailing checks from inside a post office when possible, monitoring your account regularly, setting up account alerts, avoiding suspicious requests involving checks, and contact Finger Lakes Credit Union immediately if you notice unusual activity.
Are checks still safe to use?
Yes. Checks remain a secure payment method when used carefully. Taking simple precautions, such as mailing checks securely, reviewing your account activity, and staying alert to common scams can help protect your finances.
How do I know if a check is fake?
Warning signs may include unexpected payments, checks for more than the agreed amount, requests to send money back, or pressure to act quickly. If something seems unusual, contact Finger Lakes Credit Union before depositing or spending the funds.
What to Do If You Become a Victim of Check Fraud
At Finger Lakes Credit Union, protecting your financial well-being is part of our commitment to being your trusted financial partner. Whether you're depositing your first paycheck, managing a family budget, running a small business, or planning for retirement, we're here to help you navigate every season with confidence.
If you notice suspicious account activity, believe a check has been stolen, or aren't sure if a check is legitimate, don't wait. Reach out to us as soon as possible. The sooner we know, the sooner we can work with you to help protect your account.
Together, we can help safeguard your finances so you can stay focused on building the remarkable life you're working toward.
Think you may be a victim of check fraud? Contact Finger Lakes Credit Union immediately or visit your nearest branch. Our team is here to answer your questions, discuss your options, and help you take the next steps with confidence.
About the Author
Tim Van Derlike
Vice President, Risk Management Officer
Tim leads risk management strategies, facilities management, and regulatory compliance at Finger Lakes Credit Union, helping ensure the organization operates safely, securely, and in the best interests of its members. With 26 years of service at the Credit Union, he works closely with teams across the organization to strengthen internal controls, manage risk, maintain safe and efficient facilities, and navigate an evolving regulatory environment.
Tim is committed to protecting the Credit Union and its members through thoughtful planning, collaboration, and proactive oversight. Through his leadership, Finger Lakes Credit Union continues to uphold a strong culture of compliance, operational excellence, and responsible risk management, ensuring members can bank with confidence.