Reports of check fraud have surged sharply in recent years, raising concerns about the security of mailing paper checks and prompting federal agencies and financial institutions to advise consumers to adopt electronic payment methods. According to data from the FBI and the U.S. Postal Service, incidents of check fraud nearly doubled from 350,000 in 2021 to 680,000 in 2022.

The increase in fraud is closely tied to a dramatic rise in mail theft, which has escalated from just over 2,200 high-volume attacks in 2010 to more than 49,000 in 2023—a nearly 2,000 percent increase. Organized postal crime is now a significant threat, with criminals employing household chemicals such as acetone or bleach to erase payee information and rewrite checks to their own names.

A recent case involving a California couple illustrates the risks and challenges consumers face in recovering stolen funds. The couple received a notice from the Internal Revenue Service indicating they had missed a quarterly tax payment and owed over $12,000 in penalties and interest. However, their bank statements showed that the check had cleared. Upon examination of the scanned check image provided by their bank, they discovered the payee line had been altered from the IRS to an individual’s name.

The couple reported the fraud to their bank, Chase, but initially were told they had missed the deadline to report the issue, as the fraudulent transaction had occurred a year prior. Despite this, they continued to pursue the matter, eventually learning the stolen check had been deposited into another Chase account. Following further inquiry, the bank identified that roughly $11,000 was still in that account and arranged to reimburse the couple.

Chase spokesman Jerry Dubrowski stated the bank was pleased to resolve the case but emphasized that customers should avoid mailing paper checks when possible. He encouraged the use of electronic payments and advised customers who must use checks to closely monitor their accounts to detect discrepancies.

Bank liability for check fraud is often limited by reporting deadlines established under account agreements and the Uniform Commercial Code, meaning consumers may bear the financial burden if they fail to report fraud promptly. Experts note that the speed and automation of modern check processing increase the risk that altered checks clear before manual inspection can detect tampering.

To mitigate risks, the FBI and Postal Service recommend several precautions for protecting mailed checks and personal mail. Consumers should promptly retrieve their mail, use security envelopes, avoid leaving outgoing mail in unsecured mailboxes, and consider the Postal Service’s hold mail service when away. Checks should be written using permanent gel ink with no blank spaces to prevent unauthorized alterations. Additionally, reviewing digital images of cleared checks and regularly monitoring bank activity can help detect fraud early.

While electronic payments provide safer alternatives, the persistence of postal and check fraud underscores the continuing vulnerabilities in traditional payment methods, highlighting the need for vigilance among both consumers and financial institutions.