Making Money host Charles Payne and Rep. Burgess Ownes, R-Utah, recently discussed the nation’s crime epidemic and the resurgence of paper check fraud on a FOX Business segment. As online banking and electronic payments become more prevalent, many Americans still write paper checks, making them vulnerable to fraud.
Sarah Grano, a spokesperson for the American Bankers Association (ABA), emphasized the seriousness of the rise in sophisticated check fraud. The ABA is working with its members and other stakeholders to implement innovative solutions to combat the issue and protect customers and banks.
The article also delves into the reasons behind the surge in paper check fraud, with a notable increase in check fraud claims over the last few years despite the decreasing use of paper checks. The Financial Crimes Enforcement Network (FinCEN) reported a significant rise in check fraud cases, with over 680,000 cases reported last year, up from 350,000 in 2021.
According to Joe Bernardo, global head of fraud and claim operations with Wells Fargo, paper checks have not evolved as much as digital payment methods, making them more susceptible to fraud. Scammers use various methods to obtain checks and access customer account information, including stealing checks, obtaining customer credentials through phishing scams, and acquiring bank routing and account numbers to create fake checks.
To better protect themselves, individuals are advised to use digital payment methods, use non-erasable black gel ink when writing checks, mail checks at the post office, and review accounts and statements regularly. Additionally, signing up for daily balance transactions and balance alerts, as well as keeping contact information up to date, can provide an added layer of security.
Overall, the article provides valuable insights and recommendations to help individuals safeguard themselves against paper check fraud amid the ongoing rise of sophisticated scams targeting financial transactions.