Stolen checks are exploding across the board as of late. Every day, new reports are coming, reported in various categories of loss.
1. Traditional Counterfeit Checks
The cost of a robust counterfeit check operation can range from $0 – $300. Boosters are tasked with stealing the ink, the software, the blank check paper – Toner is slightly more difficult to acquire, but still not much of an obstacle. Once a check has been obtained, Photoshop is used to recreate the background, first print onto blank check paper (either business or personal stock), then the check stock is reloaded into the printer and the lines / check information is printed on the background, using Checksoft or other accounting software.
Applications for counterfeit Checks include: Check Payments and Check Cashing
2. ACH Payments
During my time on the other side of the fence, I encountered countless platforms that allowed payment via ACH, requesting simply the account and routing number to process payment. Towards the end, there was an increase in additional KYC, but that has a further vulnerability and introduces number 3:
3. 3rd Party ATO’s
I am labeling this method “3rd-party ATOs”. – I’m not going to publish this one publicly (in text). If you are interested in chatting about this one, please reach out directly.
Strategy Items:
1. Setup Notifications with your Financial Institution
Major banks allow for notifications to be set up for ACH transactions, check transactions, etc., each with near real time notifications. Set these up and set the threshold for notification low. Like 10$. How often do you pay with checks? 3 times a month? Receiving 3 text messages throughout the month is a minor inconvenience in the context of your entire account being drained.
2. Use the mail chutes inside of post offices
If you are dropping off checks in blue boxes, find your nearest post office and go inside to their mail drop chute. Fraudsters are aware of the general public’s need for “convenience”. Don’t let them weaponize it against you.
3. Stop using checks when possible.
Unauthorized card payments are significantly easier to dispute and don’t have quite the same potential to exploit. Track your transactions and set up your notifications / alerts.
Be proactive, my friends.
