In the fast-paced world of digital payments, it’s easy to think that checks are a thing of the past. However, paper checks are still a common way for many small businesses to send and receive payments. Unfortunately, that means check fraud is still a real—and growing—threat in 2025.
Why Check Fraud Is Still a Threat in 2025
- Businesses Still Use Checks. Small businesses often rely on checks to pay vendors, rent, or even employees. Checks provide a paper trail and a familiar process. But they also offer criminals a physical item they can alter, forge, or steal.
- Criminals are Getting Smarter. Gone are the days of simple check washing (where the fraudster erases the ink and writes in a new amount). Today’s scammers use high-tech tools to replicate checks or steal check information through phishing scams, mail theft, or even breaches in accounting software.
- Mail Fraud is on the Rise. One of the most common forms of check fraud starts in the mailbox. Criminals steal checks from outgoing or incoming mail, alter them, and cash them at different financial institutions. Business checks, which often carry higher values, are a favorite target.
- Fraud Protection is not Foolproof. While financial institutions have stepped up their fraud detection efforts, many times, it’s too late by the time fraud is discovered. Once the money is gone, recovery can be tricky (if not impossible).
How to Avoid Check Fraud
- Move to Digital Payments When Possible. What is the most effective way to reduce check fraud? Use fewer checks. Digital payments, like ACH transfers or online bill pay, are faster, safer, and more challenging for criminals to tamper with. Services like Zelle® for business or other secure banking apps offer strong fraud protection and are more efficient than using traditional checks.
- Use High-Security Checks. If you must use checks, invest in high-security check stock. These checks include features like watermarks, microprint, and color-shifting ink, which make them harder to forge. Also, never print checks on plain paper or from unsecured printers.
- Set Up Positive Pay with Your Bank. Positive Pay is a service that many banks offer, and it’s a game-changer for fraud prevention. With Positive Pay, you send your bank a list of checks you’ve issued, including the check number and amount. The bank will flag it if someone tries to cash a check not on your list. It’s a simple but powerful tool to stop fraudulent checks from clearing your account. Learn more about Quail Creek Bank’s Positive Pay here.
- Keep Checks and Banking Information Secure. Always store checks in a locked, secure place, and limit who can access them. Shred any voided or unused checks. Be cautious when sharing your banking information—especially online or over email. Criminals often use phishing emails to trick businesses into giving away check or bank account details.
- Monitor Bank Activity Regularly. Check your bank accounts daily. The faster you spot suspicious activity, the better your chances of stopping fraud before it causes serious damage. Set up alerts for large withdrawals or unusual transactions to notify people immediately.
- Train Your Staff. Educate your employees about check fraud and safe payment practices. Make sure they know not to leave checks in outgoing mailboxes or unattended. Encourage a “see something, say something” culture so that any red flags are reported quickly.
What to Do If You Suspect Check Fraud
Act fast. Contact your financial institution immediately if you notice suspicious transactions or missing checks. File a police report and notify your local postal inspector if the fraud involved mail theft. The sooner you take action, the more likely you are to minimize losses.
Important: If you notice suspicious transactions or missing checks in your Quail Creek Bank account, contact us immediately at 405-755-1000.
The Bottom Line
Check fraud may seem old-school, but it’s still a serious threat in 2025—especially for small businesses. While checks aren’t going away tomorrow, that doesn’t mean you must be an easy target. Stay informed, stay secure, and keep your business moving forward.
