Most of us have fallen for a scam. If you were lucky, all it cost you was your phone number, a small amount of cash, or a bit of your pride. You might even consider it a small price to pay for a valuable lesson. After all, you’re not likely to fall for that same scam again, probably for the rest of your life.

Unfortunately, bad actors know that, too. That’s why they create novel ways to part you from your money or sensitive information. The faster they innovate, the longer it takes the rest of us to catch up.

But by simply knowing the variety of scams, how they work, and their telltale signs, you can stay one step ahead. That’s especially true of check fraud.

Types of Check Fraud, How They Work, and What to Look Out For – A Main Street Guide

Cybercrime may reign in the 21st century, but some fraudsters still prefer ink and paper. While financial institutions do what they can to combat business email compromise – the industry’s top source of fraud – they must also contend with check and mail fraud. Here are the most common forms that check fraud takes and how you can spot them.

Check Kiting

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.

Signs of Check Kiting

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:

• Low average balances in suspect accounts
• Higher-than-average deposits and withdrawals
• Repeated balance inquiries
• Signs of check duplication/counterfeiting (poor paper, smeared ink)

Check Washing

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.

Signs of Check Washing

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:

• Smudged ink or stains
• Unusual signatures
• The VOID pantograph (visible when chemically treated)
• Discolorations or other damage to the paper

As account holders, we can take certain steps to reduce check forgery on our end. Those include:

• Using indelible ink pens when filling out checks
• Not sending checks through the mail
• Not disposing of checks in the trash (shred them instead)
• Investing in high security checks with advanced security features

Counterfeit Checks

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.

Signs of Check Counterfeiting

Even the best software and printers aren’t capable of reproducing standard safety features. Time, effort, and technology can help us catch discrepancies, including:

• Missing watermarks
• Missing/blurred microprint
• Smooth on all sides (no perforations)
• Smudged ink
• Different or unusual typed font
• Altered or missing institution logos

Emerging Check Fraud Trends

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

AI Check Forgery

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.

Synthetic Identity Fraud

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.

What to Do if You’re a Victim

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

How to Report Check Fraud

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.

Is Check Fraud a Felony?

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.

How to Prevent Check Fraud

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.

Know Your Enemy: Stay Up to Date on Check Fraud Trends with Main Street

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.

Explore Industry Trends, Top Tips, and the Latest Fraud News

Since 1998, Main Street has served community financial institutions from coast to coast. Check our Insights page often for the latest on emerging scams, check fraud detection, and more. We’ll keep you posted about the latest trends in fraud so that you can keep safe.

The post Main Street Investigates: The Many Faces of Check Fraud appeared first on Main Street Inc..

Imagine paying for a new car with 3,000lbs of wheat. Centuries ago, that wasn’t far from reality. In the earliest days of buying and selling, those conducting business abroad faced a serious challenge.

How can you pay for goods or services without carrying large amounts of currency or commodities with you? The answer was simple – a promissory note could be carried more easily than large quantities of coin or grain and could be exchanged elsewhere for payment.

The humble check has taken dozens of forms throughout the ages – from inscribed clay tablets to the high-security financial instruments of today. But now, in the digital age, checks face stiffer competition than ever before. Earlier this year, a pair of executive orders were signed into law that could end the check as we know it – or perhaps not.

Executive Orders Prohibiting Check Payments from the Federal Government

On March 25, 2025, the President signed two executive orders directing the US Department of the Treasury to transition away from paper checks for federal disbursements.

Executive Order 14247 and Executive Order 14249 are aimed at digitizing federal payments and combating fraud. To accomplish these goals, all federal agencies are required to transition to electronic funds transfer (EFT) by September 30, 2025. Thankfully, the executive order includes limited exceptions to that September 30 deadline, especially in light of public commentary pointing out many serious issues.

What are Federal Disbursements?

In short, federal disbursements are payments made by the federal government. These payments may go to private citizens, contractors, vendors, and others.

The most common federal disbursements include:

• Tax Refunds
• Unemployment Benefits
• Social Security Benefits

• Veterans’ Benefits
• Student Loans
• Disaster Relief Funds

• Research Grants
• Small Business Payments
• Vendor/Contractor Payments

Under this pair of executive orders, all of these payments will have to be made electronically – a small lift for municipalities and big businesses, but a serious change for some citizens and small businesses.

This begs the question: is such a major disruption justified given the challenges cited in the executive orders – those of check and mail fraud?

Zooming in On Fraud – Check & Mail Fraud by the Numbers

Is Check Fraud Really That Bad?

There’s no denying that check fraud is a serious issue affecting private citizens and institutions alike.

The Association for Financial Professionals (AFP) has been tracking the ups and downs of financial fraud over recent years by calculating the percentage of institutions affected.

2023

65%

Reported Check Fraud

2024

63%

Reduced Check Fraud

In 2024, 79% of institutions reported financial fraud attempts, with 63% of institutions experiencing check fraud specifically. For context, in 2023, 80% of institutions reported general fraud with 65% of incidents blamed on checks.

In other words, from 2023 to 2024, general fraud has fallen by 1% while check fraud has dropped by 2%. Fraud is dropping slightly – good news for everyone.

What are the Most Common Forms of Financial Fraud?

When it comes to the origination of fraud, checks are a footnote compared to business email compromise (BEC). BEC is a type of phishing attempt relying on impersonation, malicious links, and false urgency to extract sensitive information.

According to the AFP’s Payments Fraud Survey Report, these were the most common sources of fraud reported in 2024:

• Business Email Compromise (BEC) – 62% of institutions affected
• Tactics Other than Email* – 49%
• Vendor Impostor – 45%
• Invoice Fraud – 24%
• Mail Fraud – 23%

*forged checks, stolen cards, corporate synthetic identity fraud.

Payments Fraud Survey Report

To be clear, mail fraud and forged checks (tactics other than email) appear on this list, but they’re not nearly as common as email fraud. Yet no executive order appears forthcoming that bars the use of email at American institutions or otherwise mandates cybersecurity training for financial professionals.

Is Mail Fraud Really That Bad?

Mail fraud and check fraud are often mentioned in the same breath. Postal interference is a significant contributing factor, after all. Statistics are scarce for mail fraud specifically, though a 2023 report by the Financial Crimes Enforcement Network (FinCEN) attributed $688 million in losses to mail fraud between February and August – a six-month period. Doubling that figure to account for a year’s worth of mail fraud amounts to a $1.3 billion estimate.

Package theft, meanwhile, accounted for $12 billion in losses throughout the 2024 calendar year – more than 9 times the cost of mail fraud in 2023. Porch pirates are more successful by far than fraudsters who steal checks from mailboxes.

Proposed Solutions & Likely Impacts

Are Electronic Payment Methods That Much Safer Than Checks?

Unfortunately, no payment method is 100% secure. Wherever money changes hands, there will be bad actors scheming to intercept it – from old fashioned mailboxes to encrypted cryptocurrency wallets.

Check fraud is among the least sophisticated forms, contributing to its prevalence today. But cybercrime, identity theft, and malware are evolving to take advantage of more modern forms of payment. The AFP’s report also breaks down methods of payment affected by business email compromise.

Transaction Types Most Affected by Business Email Compromise:

63%

Wire Transfers

50%

ACH Credits

26%

Checks

26%

ACH Debits

11%

Credit Cards

9%

P2P Payment Services

While the least sophisticated criminals focus on checks, others collect through electronic transactions. These numbers reveal that a simple email is all it takes to skim funds from the most modern (and supposedly more secure) payment methods.

Is Everyone Ready to Receive Electronic Payments?

The latest data enables us to see a big picture, but there’s a human cost to fraud that’s not so easily quantified. Though admirable in their aims, these executive orders put certain segments of the American public at a disadvantage.

Not everyone has access to smart phones (tap-to-pay) or reliable internet. Additionally, not everyone is educated on the most modern payment methods. In rural America and elsewhere, the absence of paper checks could have serious consequences for the most vulnerable among us.

Detractors of the executive orders have rightly pointed out that they could negatively affect:

Senior citizens on Social Security

Disabled Americans on Social Security

Rural communities

The unbanked

Small businesses nationwide

As of 2025, nearly 74 million Americans rely on social security – about 21% of the population. Another 5.6 million households are unbanked, meaning that no one at the residence uses or has access to banking services.

If those numbers seem troubling to you, then you’re not alone. On July 24, 2025, the Social Security Administration backtracked on discontinuing paper checks for recipients who relied on them. While ambitious, these executive orders are not without complications that could take months or years to solve.

Is This the End of Paper Checks? No, Not Even Remotely.

Paper Checks Usage: 91%

To the growing pile of percentage points, we can add one more from the AFP’s report: 91% of surveyed organizations continue using paper checks – up from 75% in 2023. Checks aren’t just popular still; they’re demonstrably more popular than in recent memory.

The advent of high security checks – featuring microprint signature lines, 3D hologram foils, and other advanced printing techniques – has put the payment method back on the map. AI fraud detection and other emerging technologies are also reversing vulnerabilities.

So, while some in offices high and low insist the check is dead, many American citizens and businesses would simply disagree.

Sources:

Banca d’Italia. 2024. “Bank of Italy – Mesopotamian Clay Tablets.” Bancaditalia.it. 2024. https://www.bancaditalia.it/servizi-cittadino/musei-collezioni/museo-moneta/tavolette-mesopotamiche/index.html?com.dotmarketing.htmlpage.language=1&dotcache=refresh

“Modernizing Payments to and from America’s Bank Account.” 2025. The White House. March 25, 2025. https://www.whitehouse.gov/presidential-actions/2025/03/modernizing-payments-to-and-from-americas-bank-account‌

Leddy, Maureen. 2025. “Transition Challenges Expected as Treasury Goes Paperless.” Thomson Reuters Tax & Accounting News. July 8, 2025. https://tax.thomsonreuters.com/news/transition-challenges-expected-as-treasury-goes-paperless

“Finance and Treasury Survey Research & Economic Data.” 2025. AFP. 2025. https://www.financialprofessionals.org/training-resources/resources/survey-research-economic-data/details/payments-fraud

“FinCEN Issues In-Depth Analysis of Check Fraud Related to Mail Theft | FinCEN.gov.” 2024. Fincen.gov. September 9, 2024. https://www.fincen.gov/news/news-releases/fincen-issues-depth-analysis-check-fraud-related-mail-theft

Adkins, Matthew. 2023. “2021 Package Theft Annual Report.” Security.org. November 1, 2023. https://www.security.org/package-theft/annual-report

Desilver, Drew. 2025. “What the Data Says about Social Security.” Pew Research Center. May 20, 2025. https://www.pewresearch.org/short-reads/2025/05/20/what-the-data-says-about-social-security

“FDIC Survey Finds 96 Percent of U.S. Households Were Banked in 2023 | FDIC.gov.” 2024. Fdic.gov. 2024. https://fdic.gov/news/press-releases/2024/fdic-survey-finds-96-percent-us-households-were-banked-2023

Picchi, Aimee. 2025. “Social Security Retreats from Plan to Eliminate Paper Checks for Beneficiaries.” Cbsnews.com. July 24, 2025. https://www.cbsnews.com/news/social-security-benefits-paper-checks-ending-reversal

The post Checks, Fraud, and Federal Reform: A Deeper Look appeared first on Main Street Inc..

But where you get your checks from can have an outsized impact on your data security, your check quality, and even your check program’s affordability. Now more than ever, getting your checks directly from your financial institution is the best bet – even if online check vendors promise the moon.

As younger generations navigate significant milestones in their adult lives, they’re choosing checks to pay for their most meaningful expenses. Community financial institutions are uniquely positioned to educate accountholders on the many benefits of ordering checks directly from banks or credit unions.

Here are the top 5 reasons why you should order your checks from your financial institution.

Why It Matters Where You Get Your Checks – A Main Street Guide

Even in the digital age, third-party check printers abound. Ordering from a trusted financial institution remains the safest and possibly even the cheapest choice for numerous reasons.

Here’s why ordering checks exclusively from a bank or credit union matters.

Reason #1 – Enhanced Security & Compliance

When accountholders order checks through a financial institution, they can trust that their account information is protected because their bank or credit union already has access to any sensitive data needed to place a check order. Many banks and credit unions partner with a preferred check provider, like Main Street, Inc., that prioritizes security at every step of the printing process, from order placement to delivery to protect confidential accountholder data.

Financial institutions conduct thorough due diligence when selecting preferred vendors to ensure their partners adhere to strict compliance and security standards. At Main Street, our dedicated Compliance Department supplies Due Diligence documents such as a SOC 2 Type II Report, Letter of Attestation, Security Incident Response Policy, and more to our financial institution clients. This Due Diligence process ensures our client’s and accountholder’s information is kept secure.

Check fraud accounts for the most significant dollar amount of financial loss which makes high security checks an appealing option for many consumers. At Main Street, our high-security check options for both business and personal use help safeguard our clients from fraud with multiple layers of defense, including:

• A “Void” pantograph that appears when a check is copied
• A visible and unreplicable watermark when high security checks are held up to the light
• A high-resolution warning band and microprint signature line that appear when the check is copied
• A 3D hologram foil fused to the front of each original check

Learn more about the benefits of high security checks.

Reason #2 – Quality & Affordability

Believe it or not, the quality of your checks matters. Checks obtained from your financial institution comply with stringent Check 21 standards and are printed on high-quality check stock, effectively minimizing the risk of check fraud.

At Main Street, for instance, our commitment to quality is evident in our use of check stock that is embedded with fluorescent security fibers and sensitive stain indicators, showcasing our dedication to the security of our client’s financial transactions.

Additionally, many preferred check providers that partner exclusively with banks and credit unions offer added security features at no extra cost as part of a comprehensive quality assurance package. For example, Main Street checks feature heat-sensitive security icons on all our standard check stock, making them significantly more challenging for scammers to replicate.

That explains the quality, but what about affordability? many financial institutions provide exclusive discounts or even free checks to their accountholders based on their account type, such as Student Checking or Senior Checking, making them an appealing and affordable choice for many consumers. Most banks and credit unions will also issue free reprints or replacements in case of lost mail, typos, or other printing issues.

In essence, the quality and affordability of checks directly from your financial institution can’t be overstated.

Reason #3 – Timely Delivery

When it comes to receiving your checks promptly, ordering from your bank or credit union often beats third-party check vendors by a mile. At Main Street, we understand the importance of prompt delivery, which is why we prioritize efficient order processing and fast shipping.

On average, most of our orders have an impressive 24-hour turnaround time from when you place your order to when it’s shipped out. What’s more, all our personal check orders are shipped via First-Class Mail at an affordable price, eliminating the need for accountholders to pay extra for expedited shipping.

Our clients and their accountholders receive their checks in 3 to 5 business days on average. By contrast, many other check vendors rely on standard bulk mail, resulting in frustrating waits of 3-4 weeks.

By choosing a preferred check provider associated with your bank or credit union, you may be able to benefit from more swift and reliable delivery, ensuring you have what you need when you need it most.

Reason #4 – Exceptional Customer Service

Exceptional customer service is another compelling reason to order checks directly from your bank or credit union. When accountholders choose this route, they benefit from personalized assistance from knowledgeable staff members who understand their unique needs.

Many preferred check vendors, like Main Street, offer seamless integration with our clients’ online banking platform, simplifying the check-ordering process and ensuring accurate account and personal data. Moreover, our clients and their accountholders can quickly request new checks or place exact reorders without navigating confusing external websites or divulging payment information to unfamiliar vendors.

At Main Street, our commitment to exceptional service is evidenced by our rapid response times. We typically answer calls in 30 seconds or less, and every call is handled by a live representative.

By choosing a preferred check provider affiliated with a financial institution, consumers not only receive high-quality checks and swift delivery, but they also enjoy unparalleled customer service tailored to their specific needs.

Reason #5 – Supporting Local Businesses

There are several benefits to shopping and banking locally. For starters, local financial institutions value customer service more than big commercial banks. They also select small-business vendors, such as Main Street, to provide excellent and personable customer service with a dedicated person instead of a frustrating robot.

Consumers can also make a difference in the lives of those in their communities by banking locally. When ordering checks from a community bank or credit union, consumers are also supporting a local business that reinvests in their community’s economy. Choosing to bank local opens the door for positive community benefits like helping a friend or family member buy their first vehicle or home, sponsorships of local non-profits and schools, taxes used to build local parks or repair roads, and so much more.

Consumers have the power to make a difference through the economic trickle-down of ordering through a community bank or credit union. Bank local, spend local, save local – all by getting your checks closer to home.

Get Better Checks from Local Financial Institutions That Care

Checks aren’t going anywhere anytime soon. But like so much else these days, the temptation to buy your checks online can be hard to resist. There’s little harm in browsing or buying furniture, clothes, or even cars online. But when it comes to your checks, it’s best to think before you add something to your cart.

At Main Street, we use a quarter century of experience when enhancing our check products for 21st-century consumers. Get your checks from your local bank or credit union and know that everything possible has been done to ensure quality, security, and service.

The post The Top 5 Reasons to Order Checks Directly from Financial Institutions appeared first on Main Street Inc..