Criminals Are Reinventing Check Fraud. Are Financial Institutions Prepared?

Fraud is growing fast and becoming a major concern for both consumers and Financial Institutions

• 54% of US consumers say they have seen an increase in check fraud attempts in the last 12 months. This rises to 77% among people who’ve been a victim of check fraud in the past.

• 68% of US consumers feel there is an increase in check fraud attempts around holiday periods i.e., Thanksgiving.

• 73% of US Financial Institutions identify check fraud as one of their biggest fraud challenges and for many it’s a growing concern.

Fraud isn’t just financial – it affects trust and personal confidence

• 45% of people worry about the stigma of falling victim to check fraud.

• 70% of US Financial Institutions report more customers reaching out after falling victim to check fraud.

• Many check fraud attempts go unreported with 27% of US consumers saying they wouldn’t admit to being defrauded.

Consumers expect proactive measures from both Financial Institutions and the Government

• 77% of people believe that banks and financial providers need to do more to protect people from check fraud.

• 76% want their bank or financial provider to keep them safe from check fraud by providing better information about how to avoid it.

• 73% believe that the Government should be working more closely with the financial sector to tackle check fraud.

Financial Institutions are investing heavily and embracing technology to fight fraud

• 84% of US Financial Institutions say new tech such as AI is key to tackling rising check fraud.

• Eight in ten (82%) US Financial Institutions have already integrated AI into their security measures. Those yet to do so risk losses from not effectively tackling fraud, whether that’s financial losses or customers flocking to competitors.