11/12/2025

Check Fraud is Surging...Here's How Businesses Can Protect Themselves

Business West

In an era dominated by digital payments, it’s easy to assume that check fraud is a relic of the past. But the reality is far more alarming: check fraud is not only alive, but it’s thriving, and it’s evolving to span both physical and digital realms.

As someone who has spent more than two decades in banking compliance and fraud prevention, I have seen the damage firsthand. Check fraud isn’t just inconvenient — it can be devastating.

At Monson Savings Bank, we’ve helped business customers who faced losing tens of thousands of dollars in a single incident. And what’s most frustrating is that many of these losses are preventable with the right tools and awareness.

The Mechanics of Check Fraud

Check fraud is no longer confined to forged signatures and stolen paper checks; it has evolved into a complex, tech-enabled threat. Criminals are using both traditional tactics and digital tools to exploit vulnerabilities in business payment systems.

Classic forms of check fraud include forged signatures, altered payee names, counterfeit checks, and check washing, where stolen checks are chemically altered and rewritten. These methods remain prevalent, especially when checks are sent through unsecured mail channels.

Fraudsters aren’t just individuals — they’re organized networks. They use social media and encrypted messaging apps to share techniques and sell stolen check images. It’s a whole underground economy.