There have been stunning breakthroughs in the payments space over the past few years, and many businesses and financial institutions have devoted significant time and resources to researching and adopting new payment methods. Although paper checks might seem outdated, over half of Americans wrote a check last year, and many organizations still rely on them.
Though fraud is a constant focus for businesses, many fraud teams have shifted their attention to emerging payment methods. As Jennifer Pitt, Senior Fraud and Security Analyst at Javelin Strategy & Research, found in her latest report, The Pervasiveness of Check Fraud: Banks are Paying the Price, check fraud is an increasingly rampant threat that financial institutions must address.
Older adults tend to write more checks each month than younger people, in part because it’s a payment method they have grown comfortable with over the years. Some consumers also send checks as gifts because of the personalization aspect, allowing them to write a personal message to the recipient.
“Many Americans are also still under the mistaken impression that checks are more secure than peer-to-peer platforms, ACH transfers, and digital payments,” Pitt said. “The Javelin report found that most Americans believe those methods are either as secure as or less secure than checks.”
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