While many believed check fraud was an outdated crime, it is making a strong comeback.
In the United States, especially, check fraud has reached epidemic levels, with incidents nearly doubling in recent years.
This expert-driven article explores the most urgent check fraud trends of
2025: from mail theft and counterfeit schemes to synthetic identities and remote deposits.
We'll examine the latest statistics, highlight criminals' evolving tactics, and outline the countermeasures banks are adopting to fight back in 2025.
Key takeaways:
- Check fraud is rising sharply: In 2024, banks filed more than 680,000 Suspicious Activity Reports (SARs) tied to check fraud, and surveys show 63% of organizations now cite it as their most common payment threat.
- Check fraud trends 2025: In 2025, check fraud is being driven by six converging threats: mail theft, high-tech counterfeiting, synthetic identities, remote deposit capture fraud, account takeovers, and insider collusion.
- Banks need real-time defenses: Static rules can't stop today's check fraud trends in 2025. VALID Systems gives banks adaptive fraud scoring and consortium intelligence to block losses while keeping trusted customers moving.
Why check fraud still matters in 2025
Surprised to hear people still write checks? You're not alone, yet 61% of Americans say they do.
What's even more eye-opening is that it's not just older generations keeping the habit alive. In fact, 59% of Gen Z and 57% of Millennials admit they still pull out the checkbook, compared to 48% of Gen X.
Of course, older adults lead the way, with 77% of those 65 and over still writing checks regularly.
These check fraud statistics tell the story more clearly than anything else:
- In 2024, banks filed 682,276 check-fraud SARs, slightly up from 665,505 in 2023 and nearly matching the record set in 2022, which highlights a consistently high level of fraud activity.
- According to the 2025 AFP Payments Fraud and Control Survey, 63% of organizations reported attempted or actual fraud via checks in 2024, the highest for any payment type.
- A report by Recorded Future noted a 90% increase in check-fraud SARs between 2021 and 2023, with $21 billion in U.S. losses in 2023.
So what makes check fraud so appealing to criminals today? The simple answer is opportunity and payoff.
A stolen or altered check can be cashed in just 1–2 days, long before the fraud is flagged. That speed, meant for convenience, is precisely what scammers exploit.
Check fraud trends 2025: 6 emerging threats banks can't ignore
Here's a closer look at six critical trends driving the check fraud surge:
Trend 1: Mail theft
The largest factor in the recent check fraud explosion is plain old mail theft. Criminals are systematically targeting the U.S. mail to intercept checks before they ever reach their intended payees.
According to the U.S. Postal Inspection Service, mail theft complaints increased 161% during the pandemic (March 2020–Feb 2021 vs. the prior year). And the crime has only intensified since then.
"Check washing" has made an unfortunate comeback as a preferred tactic. In a check-washing scheme, thieves use chemicals (like acetone or bleach) to erase the ink on a stolen check, removing the payee's name and sometimes the amount. They then rewrite the check to themselves (or a mule) for a large sum.
Criminals use five main tactics to steal checks in transit:
- Residential mailboxes: Stealing outgoing or delivered checks, often flagged by the red mailbox signal.
- Fishing from USPS blue boxes: Using sticky traps or stolen keys to pull mail after hours.
- Postal facility break-ins: Burglarizing post offices or sorting centers for bags of mail.
- Robbing carriers: Attacking postal workers for their universal "arrow keys" and mail.
- Insider collusion: In rare cases, bribing or planting accomplices inside USPS.
Real-world example:
In May 2025, prosecutors charged four people in Detroit with a $63 million mail-theft scheme that involved selling stolen checks on Telegram.
How to protect against mail-theft check fraud:
- Avoid leaving checks in residential mailboxes; deposit them inside a post office or use secure collection boxes near pickup time.
- Retrieve mail promptly and sign up for USPS Informed Delivery to track what's on the way.
- Use high-security checks and tamper-resistant envelopes with watermarks or microprinting to make washing harder.
- Monitor bank accounts closely and place stop-payments if mailed checks go missing.
- For businesses, consider digital bill-pay or ACH to reduce reliance on paper checks altogether.
Trend 2: High-Tech Counterfeiting
Not all fraudsters rely on bleach and ink erasers. Increasingly, criminals are turning to digital tools and AI to create counterfeit checks that look frighteningly real.
In 2025, experts warn that "check cooking" - digitally altering check images to produce forgeries - has become one of the fastest-growing fraud tactics.
With advanced editing software and high-quality printers, a single stolen check can be turned into dozens of fakes, often made out for smaller amounts to avoid raising red flags.
Real-world example:
In 2024, a Tampa man was arrested for using image-editing software to alter stolen checks, cashing more than $50,000 before being caught.
How to protect against high-tech counterfeiting:
- Use Positive Pay or similar services so banks can verify checks against a pre-approved list.
- Adopt image forensics and machine learning to catch pixel edits, reused images, or font mismatches.
- Train staff and customers to recognize red flags, such as faded areas, unusual fonts, or mismatched check numbers.
- Issue high-security checks with features like thermochromic ink, watermarks, or barcodes that are harder to replicate.
Trend 3: Synthetic identities
An alarming trend to watch in 2025 is the rise of synthetic identity fraud intersecting with check fraud.
In just the first half of 2025, financial institutions estimated more than $3.3 billion in potential losses from synthetic identity fraud across auto loans, credit cards, and personal loans.
Instead of stealing someone's real identity, fraudsters create "fake people" by combining real and fake data, like a real Social Security number with a fake name and date of birth.
Because the person doesn't actually exist, it's much harder for law enforcement to track down the fraud.
How criminals use synthetic identities:
- Fake account openings: Fraudsters use synthetic or stolen data to open bank accounts for depositing bogus checks.
- AI-powered personas: Generative AI produces realistic IDs, photos, and even social media footprints to make fake identities convincing.
- Deepfake verification bypass: AI videos mimic real people to fool selfie ID checks during online account opening.
- Organized rings and mules: Criminals mass-produce synthetic IDs or recruit people to act as account holders ("money mules").
- Layered scams: Romance and job scams often tie into fraud, tricking victims into unknowingly depositing counterfeit checks.
Real-world example:
In March 2025, six defendants allegedly opened bank accounts using fake businesses and stolen/fake identities, then deposited counterfeit and fraudulently obtained checks (many U.S. Treasury), attempting $80M and depositing about $50M before cash-outs.
How to protect against synthetic ID fraud:
- Tighten account opening controls: Use device fingerprinting, cross-check databases, and liveness checks on IDs.
- Spot suspicious patterns: Multiple new accounts with similar details or repeated deposits tied to one IP address can signal a fraud ring.
- Educate employees: Train staff to recognize mule behavior, like new customers depositing multiple third-party checks.
- Share data: Participate in fraud information-sharing programs (e.g., under Section 314(b) of the Patriot Act) to connect fraud dots across banks.
Trend 4: Remote Deposit Capture fraud
The rise of mobile banking has made it easy to deposit checks with a photo, but that convenience has become a new target for fraud.
Remote Deposit Capture (RDC) fraud happens when criminals exploit digital deposit channels to cash the same check multiple times, often across different banks. Without a teller physically inspecting the item, fake or altered checks can also slip through more easily.
How criminals exploit RDC and digital channels:
- Double presentment: Depositing the same check image at multiple banks before the first clears.
- "Infinite money glitch" scams: Social media schemes lure people into depositing bad checks as if it's free money.
- Avoiding human oversight: Using ATMs or mobile apps ensures no teller inspects the check's paper or signature.
- Weak counterfeit detection: Poorly made fakes that wouldn't pass a teller often slip past mobile or ATM scanners.
Real-world example:
In August 2025, a San Antonio bar employee used RDC to alter and redeposit his paychecks, stealing nearly $16,000 before police arrested him.
How to protect against RDC fraud:
- For banks: Use duplicate image detection services, AI-driven behavioral monitoring, and set sensible deposit limits for new or high-risk accounts.
- For businesses: Adopt services like reverse positive pay to spot unexpected deposits of issued checks.
- For consumers: Destroy checks after mobile deposit, never share your login, and avoid "easy money" schemes - duplicates will bounce and you'll be liable.
Trend 5: Account takeovers (ATO)
In this scheme, instead of creating fake identities, criminals hijack legitimate customer accounts using stolen login credentials.
These details are often bought on dark-web markets or harvested through phishing scams.
Once inside, fraudsters change contact information, link new devices, and use the compromised account to deposit counterfeit or altered checks. Because the account itself is real, the activity can fly under the radar - until the money is gone.
How criminals exploit account takeovers:
- Credential theft: Hackers buy or steal usernames and passwords through phishing, malware, or dark-web marketplaces.
- Contact manipulation: Fraudsters change email addresses or phone numbers on the account to block alerts to the real customer.
- Fake deposits: Criminals use the hijacked account to deposit counterfeit or stolen checks, then quickly withdraw funds.
- Mule networks: In some cases, stolen accounts are sold or handed off to money mules to complete the cash-out.
Real-world example:
In 2025, Mumbai police dismantled an international gang that bribed vulnerable locals to open bank accounts, sold those accounts to fraudsters, and enabled OTP-verified mule transactions worth millions.
How to protect against account takeover fraud:
- Strengthen authentication: Require multi-factor authentication and device fingerprinting for online and mobile banking logins.
- Monitor account changes: Flag sudden updates to contact information, especially when followed by high-value deposits or withdrawals.
- Use behavioral analytics: Spot unusual activity, such as logins from new geographies or large deposits into long-dormant accounts.
Trend 6: Insider collusion
In 2025, regulators warn of a troubling rise in insider collusion - fraud made possible by employees inside financial institutions, check printers, or even the postal service.
With privileged access, a single rogue employee can override security controls, approve fraudulent deposits, or leak sensitive information to organized crime rings.
How criminals exploit insider collusion:
- Bribery: Fraud rings offer cash or favors to employees in exchange for approving bad checks or speeding deposits.
- Data leaks: Insiders provide fraudsters with stolen account details, check templates, or customer information.
- Process overrides: Employees bypass hold policies or fraud alerts that would usually stop suspicious deposits.
- Postal access: Corrupt postal workers supply fraud rings with stolen checks or USPS "arrow keys" to unlock mailboxes.
Real-world example:
In early 2025, a woman in Kansas City, Missouri, was indicted for using a stolen identity to open investment accounts and deposit multiple fraudulent U.S. Treasury checks, including a check for $1,445,443.69, before transferring funds.
How to protect against insider collusion:
- Strengthen vetting: Conduct rigorous background checks and ongoing monitoring of employees with account access.
- Enforce dual controls: Require multiple approvals for large or high-risk check deposits.
- Rotate duties: Limit opportunities for employees to build unchecked access by rotating staff responsibilities regularly.
- Foster reporting culture: Encourage employees to report bribery attempts or suspicious colleague behavior without fear of retaliation.
How VALID Systems helps banks combat emerging check fraud trends
We can conclude that the best way for banks to stay ahead of check fraud threats is to combine real-time detection, adaptive risk models, and customer-first liquidity management.
This is where VALID Systems provides a decisive advantage. VALID Systems delivers AI-driven fraud prevention tools built specifically for banks and credit unions.
Key elements of VALID's approach:
- CheckDetect: Real-time deposit analysis that flags risky items at the teller, ATM, or RDC before losses occur. This innovative solution alerts you to over 75%+ of loss-bound checks before posting, giving staff the chance to act immediately.
- InstantFUNDS: For customers, faster access matters. VALID's InstantFUNDS feature provides immediate liquidity on safe deposits while automatically holding suspicious items. This dual model boosts trust and satisfaction while reducing risk.
- Inclearing Loss Alerts: VALID monitors the clearing process and sends alerts if items deviate from earlier profiles, catching late-stage fraud before funds leave the bank.
- VALID Edge Consortium Data: Fraud doesn't stop at one institution. VALID aggregates intelligence across its client base, strengthening models with the latest fraud patterns seen nationwide.
Are you prepared for the latest check fraud trends in 2025?
VALID Systems gives you the tools to fight back - request a free demo today.