Even as digital payments continue to grow, traditional paper checks remain widely used in many industries – and unfortunately, they’re still a prime target for fraud. Criminals take advantage of gaps in the check-writing and processing process, putting both individuals and businesses at risk. Understanding how check fraud works and knowing how to protect yourself are key steps in keeping your money secure.

Common Check Fraud Schemes

Forged Signatures: One of the most straightforward forms of check fraud involves forging the account holder’s signature. Criminals may copy a signature from a stolen check or attempt to replicate it by sight. Once cashed or deposited, these forged checks can result in unauthorized withdrawals and costly losses.

Check Washing: Check washing occurs when criminals use chemicals to remove ink from a legitimate check. They then alter the payee name or dollar amount and redeposit or cash the check, often for significantly more than the original amount.

Counterfeit Checks: With modern printing technology, fraudsters can create counterfeit checks that closely resemble legitimate ones. These fake checks often mimic logos, layouts, and account numbers. Warning signs may include missing security features such as watermarks, microprinting, or security threads.

Check Kiting: This scheme involves writing checks between two or more accounts that lack sufficient funds. The fraudster relies on processing delays to temporarily access money that doesn’t actually exist, creating an artificial balance before the checks bounce.

Stolen Checks: Checks stolen from mailboxes, offices, or homes can be altered, forged, or cashed fraudulently. Even a single stolen check can expose sensitive account information and lead to further fraudulent activity.

Best Practices for Preventing Check Fraud

Monitor Your Accounts Regularly: Review your account activity frequently through online or mobile banking. Set up alerts to notify you of unusual or high-dollar transactions so you can act quickly if something looks off.

Secure Your Checks: Keep blank checks locked away and out of sight. Pick up mailed checks promptly, and contact your financial institution immediately if checks are lost or stolen. If needed, request a stop payment by providing details such as the check number, amount, and payee.

Use Online and Mobile Banking Tools: Digital banking tools provide real-time visibility into your accounts and often include built-in security features that help detect suspicious activity early.

Be Cautious With Personal Information: Never share your account or routing numbers with unverified sources. Watch out for phishing attempts by phone, email, or text, and shred old checks, statements, and documents containing sensitive information.

Use Temper-Resistant Pens and Write Checks Carefully: Use gel or non-erasable ink and fill out checks completely. Avoid leaving blank spaces, and draw a line through unused areas to prevent alterations.

Strengthen Your Defenses With Positive Pay

For businesses that rely on checks, Minster Bank’s Positive Pay is one of the most effective tools available to combat check fraud.

Positive Pay works by giving Minster Bank a list of checks you’ve issued – such as the check number, amount, and payee. When a check is presented for payment, it’s automatically compared against your authorized list. If anything doesn’t match, the item is flagged for review before funds leave your account.

This added layer of protection helps prevent losses from altered, forged, or counterfeit checks and gives you greater control over outgoing payments. Instead of discovering fraud after the fact, Positive Pay allows you to catch suspicious items before they clear.

Key benefits of Minster Bank’s Positive Pay include:

• Early detection of unauthorized or altered checks
• Reduced financial losses and fewer disruptions to cash flow
• Greater visibility and control over check payments
• Peace of mind knowing your account has an extra safeguard in place

For businesses handling multiple checks each month, Positive Pay isn’t just a convenience, it’s a powerful fraud prevention strategy that works quietly in the background to protect your money. Check fraud may still be common, but with awareness, smart habits, and tools like Positive Pay from Minster Bank, you can significantly reduce your risk and stay one step ahead of criminals.