Ten tips for protecting your credit union and its members from check fraud

5 suggestions each for your institution and the people it serves

Fraud has become more of a factor for consumers and businesses alike, especially check fraud. Several recent media reports have incorrectly positioned the process of sending checks via postal mail as unsafe. Despite those reports, checks are still a secure form of payment and one of the safest ways to send money.

Checking fraud typically takes three forms:

  1. Altered checks. Fraudsters steal a legitimate, signed check and alter the payee and/or amount. The check is then cashed, and funds are gone from the account before the account holder realizes the check didn’t process as planned.
  2. Counterfeit checks. Fraudsters steal basic account information and use it to create fake checks.
  3. Stolen checks. Fraudsters steal newly ordered checks outright, directly from the recipient’s mailbox.


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