Summary
In a world that's rapidly advancing towards digitalization, the persistence of traditional check payments remains a cause for concern (and pain!). Recent statistics paint a stark picture of the risks associated with mailing checks, urging us all to consider safer and more secure alternatives.
According to the 2023 AFP Payments Fraud and Control Survey, a whopping 63% of organizations reported facing fraud activity through checks. Check fraud is not merely an inconvenience; it's a significant threat to your clients' financial security and personal information.
Below we’ve outlined some check fraud statistical highlights to help you encourage clients why it's time to bid farewell to this outdated payment method. However, if your clients are standing firm in their desire to mail checks, we’ve also outlined the EIGHT steps they should follow to safely mail a check.
Check Fraud Statistics
- Checks are the most vulnerable to fraud, with 63% of respondents reporting their organizations faced fraud activity via checks. (Source: 2023 AFP Payments Fraud and Control Survey)
- Check fraud tied to mail theft is soaring nationwide (Source: U.S. Treasury, Financial Crimes Enforcement Network)
- Mail theft is on the rise (Source: Los Angeles Times, 2023)
- The FBI estimates that losses from check fraud total $18.7 billion annually. (Source: Relyco, 2022)
- More than 500 million checks, more than a million a day, are forged annually in the U.S. Because of demands on law enforcement, prosecutors fail to pursue 75% of bank check fraud cases, leaving most matters to be settled between the involved parties, and placing even greater emphasis on the concept of due diligence. (Source: Relyco, 2022)
How to Safely Mail a Check
- Restrict the paper check
- Use a security envelope
- Drop the mail at a secure location
- Send the check via certified mail
- Avoid sending cash or money order
- Don’t include extra details
- Track your checks
- Consider alternative payment methods, such as paying online
(Source: Identity IQ, 2021)