Ernest Hemingway once said, “The best way to find out if you can trust somebody is to trust them.” Sadly, while our trust attracts account holders, it also opens the door to fraudsters.

Check kiting exploits “float time” – the gap between when a check is deposited and when those funds clear. A fraudster deposits a check from one account to another without having the funds. Thanks to electronic transfer, they’re able to withdraw those funds from the second account before you realize the error.

Because it’s a form of behavioral fraud, there may not be visible signs of kiting on the check itself. That said, be on the lookout for:

A check’s power is the paper it’s printed on. Modern printing techniques allow vendors to include numerous safety features that are invisible to the naked eye and not easily duplicated. But naturally, fraudsters have a workaround.

Check washing involves stealing legitimate checks (usually from the mail) and using chemicals to remove ink. Once removed, they can alter the payee and amount information. It may be low tech, but it’s surprisingly effective.

In many cases, account holders will notice the unusual transaction and alert their institution. That doesn’t mean we can’t spot check washing before the damage is done. Keep an eye out for:

Americans write billions of checks each year. At that volume, current methods of check fraud detection struggle to keep up, so bad checks slip past. And even if we catch them after the fact, the funds may be long gone.

Fraudsters make the most of modern imaging software and high-definition printers to cook up convincing fakes. These fakes can’t duplicate modern security features, but they don’t have to be perfect. They just have to pass the first inspection so that funds transfer before the error is found.

In many cases, fraudsters may use mobile deposit features to bypass software or human inspection, making check counterfeiting even more effective.

New technology is a double-edged sword. While it makes fraud easier to catch, it also gives fraudsters new methods to fool us.

Machine learning advances on a near daily basis, using the sum total of our digital output to create new images, language, and concepts. Generative AI systems can be used by almost anyone to create convincing fakes. Combined with mobile deposit, this trend should worry us all.

These days, information is more powerful than ever. Fraudsters can purchase stolen information from the dark web and combine it with fake details to create new identities (sometimes with the help of AI).

Armed with fake personas, these fraudsters open accounts that appear legitimate. After that, the sky’s the limit. Check kiting is only the beginning.

Account holders and institutions must fight back against every fraudulent check. Resources exist for both compensation and justice.

Account holders should report fraudulent transactions to their institutions immediately. Banks and credit unions can escalate the matter by contacting the Federal Trade Commission.

When mail fraud is suspected, it’s a good idea to contact the United States Postal Inspection Service here.

Yes, in many cases, check fraud is a felony, though it depends on local laws and the amount of money stolen. Mail fraud, meanwhile, is always a felony. Depending on the crime and its location, offenders may face anywhere from one to 30 years in prison, plus hundreds of thousands of dollars in fines.

Unfortunately, there’s no one way to stop fraudsters in their tracks. It will take a combination of human diligence, emerging technology, and industry-wide changes.

High security checks are having a real impact, especially when used by businesses large and small. Meanwhile, AI check fraud detection software is empowering financial institutions to examine more checks at scale and in finer detail.

Finally, financial institutions are sharing information about check fraud trends so that they can grow stronger together. Continuing education and stronger internal processes can close vulnerabilities one by one.

At Main Street, checks are our business, but keeping you and your account holders safe is our true purpose. From high security checks to newer innovations designed to protect you, we’re here to help.

Whether you’ve been using it or not, you have been collecting data this whole time. Every email you send reveals something about the recipient. Opens, clicks, and even no engagement at all can be used as data personalization fuel for the next communication.

Survey responses are more than just answers – they’re opportunities waiting to be unlocked. A low NPS score, a financial needs survey reply, or any piece of feedback can spark actions that retain customers or grow relationships.

You know your customers—but third-party data lets you see them in greater detail. With deeper insight into both current customers and prospects, you can build stronger personalized marketing campaigns, refine targeting, and deepen relationships at a faster pace.

Every account, loan, or transaction contributes to ongoing data collection that contains valuable clues. By mapping what a customer already has, your institution can spot what comes next—revealing marketing strategies in plain sight.

There’s a well-established seasonality for financial products. Home equity line of credit (HELOC) and mortgage loans see a spike in demand during the summer months, for example. But these larger patterns lack the detail that community financial institutions need. Search trends can fill in the rest.

Truth: Many affordable, scalable solutions are designed specifically for smaller institutions. Even with a lean marketing team, you can automate essential communications and campaigns.

Truth: When used well, marketing automation helps deliver more timely, relevant, and personalized messages — exactly what your customers expect today. 

Truth: Getting started with automation can be as simple as automating a welcome email or scheduling social media posts. You don’t need to overhaul your entire strategy on day one.

Truth: While it absolutely frees up staff capacity, the bigger value lies in improving customer engagement, increasing consistency, and making sure no opportunity falls through the cracks.

Checks are a product, sure, but at some institutions, they’re also like a public service. However you slice it, free checks – whether mandated or offered as a goodwill gesture – look a lot like red ink in your check program’s ledger.  

Of course, the cost of a checkbook is minor compared to the fruits of a long-term account holder relationship. But there are other, more institutional ways to offset that cost while boosting performance.  

For a start, consider offering a Basic Package of personal checks for first-time or complimentary orders – typically 30 checks instead of 60 or 90. Most account holders won’t notice the reduced quantity, and many won’t use their full supply anytime soon.  

For First Order Free or special promotions, The Basic Package with 30 checks gives the account holder a free, personalized order at the lowest cost. For ongoing “Club” programs that provide free checks, a large package (90 or 120 checks) reduces costs by requiring less order frequency.

Look for a check vendor that can support these strategies with flexible fulfillment options and an understanding of real usage trends. 

Small but meaningful price increases for other checking customers could rebalance the equation like a well-timed parry – especially when coupled with improved check designs and added security features.  

Meanwhile, partnering with a vendor that helps track order patterns and program performance can reveal unexpected revenue opportunities or cost savings, even in accounts where the checks themselves are free. Ultimately, the right check vendor for your institution should be able to help with your profitability modeling. 

When it comes to increasing check program revenue, engagement is key – and a disciplined campaign can make all the difference. The more participation you have, the better positioned you’ll be to keep costs low and revenue high.  

But we all know that it takes money to make money, and why would anyone invest in a token endeavor that’s already in the red?  

Well, for starters, these marketing materials aren’t a heavy lift (either creatively or financially). Additionally, some check vendors will provide collateral at no extra cost.  

The best marketing materials are only as good as the products they advertise. Thankfully, modern checks are anything but boring. With dozens of fun and festive designs, checks these days can match any personality. 

Operating a check program as a loss leader can be a sound strategy – especially when it helps attract and retain more valuable relationships. But with minimal effort or investment, your check program could work harder for the success of stakeholders and account holders alike. 

Consumers are bombarded by hundreds of digital messages every day. A well-designed postcard or direct mail piece can cut through the clutter, offering something tactile and personal that lands directly in a customer’s hands — not their spam folder. 

Example: A direct mail campaign promoting your new mortgage rates or credit card rewards program can see higher open and response rates than a comparable email blast. 

For community banks and credit unions, physical presence matters. In-branch signage, brochures, and print collateral reinforce your commitment to the neighborhoods you serve and create opportunities for customers to engage with your services while they’re already in your space.

Example: Promote a community event or financial literacy workshop with eye-catching posters and flyers in your branch lobbies and local businesses. 

Printed materials — especially in financial services — often carry a sense of legitimacy that digital content alone can’t replicate. Brochures, welcome kits, and rate sheets offer reassurance and professionalism, particularly for customers making important financial decisions. 

Example: New account holders appreciate receiving a printed welcome packet outlining services, contact details, and security tips — something tangible they can refer to later.