Check Fraud

Forged negotiable instruments, including fake checks, counterfeit U.S. postal money orders, phony cashier’s checks, fake traveler’s checks and counterfeit gift checks are an area of transaction–level fraud that each year causes significant losses for retailers, financial institutions and individuals.

Although difficult to quantify, payment fraud is part of a $220 Billion worldwide fraud problem that has been growing every year; together with a criminal element that continues to become more creative and efficient, companies of all sizes must react quickly to new threats from payment fraud.

According to the 2024 AFP® Payments Fraud and Control Survey, 80% of organizations reported being victims of attempted or actual payments fraud in 2023, up sharply from 65% in 2022

Prevalence of Counterfeit Checks

Although the volume of checks, both business and personal, is declining, checks are still the most widely used payment instrument for businesses. The number of checks used for payment fell by 7 billion between 2003 and 2006. However, checks continue to be the preferred target for criminals committing payments fraud. The 2025 AFP® Payments Fraud and Control Survey found that 63% of organizations were subjected to attempted or actual fraud via checks in 2024, making checks the top fraud vector among all payment types. 

Fraud Prevention – The Business Imperative

FraudFighter™ believes that these conditions require firms of all sizes to develop and implement a “layered” approach to fraud prevention. Beginning with a profile of the current state of fraud risk management, FraudFighter™ recommends an effective, business driven approach designed to reduce an organizations exposure to payment fraud.

With a leading cost of ownership model, Fraud Fighter solutions include low cost tools that can be installed at the point of transaction to conduct a basic validation of documents and identification documents, while more sophisticated tools can be layered elsewhere (e.g. – manager’s office, credit center, etc.) to capture more complete information and conduct higher–level authentication of identity. The goal of the layered solutions are to DETER fraudulent behavior from occurring, to DETECT fraud as it occurs, and to enable COMPLIANCE with regulatory requirements when conducting certain types of account transactions.