As the headline says, check fraud is on the rise and the Department has the statistics to back this statement. Below is a quick outline of the numbers:
- 350,000 cases of check fraud were reported in 2021.
- By 2022, the numbers increased by approximately 161% to 680,000.
- In the first half of 2023, approximately 400,000 cases were reported with losses estimated to hit the $24 billion mark at the end of the year.
The alarming increase in the rate of check fraud has led publications such as the New York Times to state that “you should avoid mailing checks and seek to use electronic payment options”. Although the above sounds like great advice, the facts on the ground remain that millions of checks are been mailed across the US and the world on a daily basis.
The Department of Treasury mails millions of checks monthly as a stimulus to citizens or as payment to vendors. Also, businesses/individuals mail out millions of checks to vendors or customers to pay for goods or services. Hence, telling businesses and individuals to avoid mailing out checks as the solution to eliminating check fraud is reductive.
So, What’s the Solution?
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SOURCE Troy Group
