Check fraud in the United States is rising despite a significant decline in the use of paper checks, according to recent federal data and industry experts. In 2025, Americans reportedly lost more money to check fraud than to debit card or gift card scams, even as the overall number of checks in circulation continues to fall.

Paper checks now account for just 3% of all U.S. payments, down sharply from previous decades, as digital payment methods grow more common. While the frequency of check usage has decreased, the size of individual checks has generally increased, making them more attractive targets for criminals. “Criminals know that when they see a check in the mail, it’s less likely to be a $10 check and more likely to be a $10,000 check,” said Scott Anchin, senior vice president of strategic initiatives and policy at the Independent Community Bankers of America.

Historically, checks were used for everyday purchases such as groceries and gym memberships. Today, they tend to be reserved for larger, one-time payments like contractor bills or taxes, raising the stakes for potential fraud.

The method of check fraud has evolved with technological advances. Fraudsters no longer operate individually but often work as part of organized criminal groups that steal checks in bulk. They exploit the fact that paper checks have not significantly changed in their design or security features over the years. Joe Bernardo, head of fraud and claims at Wells Fargo, noted that the basic format of paper checks remains largely the same, making them vulnerable to exploitation by sophisticated criminals.

Thieves commonly target residential mailboxes and USPS drop boxes to obtain checks. In some cases, entire bags of mail have been stolen. Once in possession of a check, criminals use chemicals such as acetone or bleach to “wash” the original details from the paper, allowing them to alter the payee and amount or create counterfeit checks entirely. Stolen checks may also be sold on the dark web, spreading risk further.

Personal information printed on checks, including account and routing numbers, amplifies the threat by exposing sensitive financial data. Adam Rust, director of financial services at the Consumer Federation of America, emphasized the privacy risks inherent in paper checks.

Consumer advocates say the most effective way to combat check fraud is to reduce or eliminate the use of paper checks altogether. In 2025, an executive order was issued by then-President Donald Trump to phase out paper checks for federal payments. However, some segments of the population remain hesitant to adopt digital payment methods due to concerns about convenience or security.

For those who continue to use checks, experts recommend several precautions. Using bank-issued checks with advanced security features, writing checks with permanent ink, avoiding leaving blank spaces, and mailing checks securely can help reduce risk. Monitoring bank accounts for unauthorized activity and promptly reporting suspected fraud are also critical steps.

Electronic payments, including credit and debit cards, electronic checks, and bank-connected money-transfer services like Zelle, are generally viewed as safer alternatives. Consumer Reports’ 2023 analysis found varying degrees of safety and privacy among popular apps, with Cash App and Apple Cash scoring well, while Zelle is favored by banks for its integration within banking apps.

Despite the ongoing risks associated with paper checks, the persistence of their use highlights the challenges faced in fully transitioning to digital payment systems.