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Checks may feel like an old-school way to pay, but check fraud is anything but a thing of the past. While fewer checks are being written today, criminals have found increasingly sophisticated ways to steal, alter and reproduce them. 

Doug Wilson, Data Processing Manager at First Federal Bank, has seen that evolution firsthand. Wilson has been with First Federal since 1993 and has spent more than three decades working with check processing. 

“I’ve been monitoring and processing checks for 33 years,” Wilson said. 

When Wilson first started, processing was much more hands-on. He worked at night processing checks, imaging each item and creating the files needed to update customer accounts. Today, much of that process happens electronically, but checks remain a common payment method and an attractive target for fraudsters.  

What Does Check Fraud Look Like? 

One type of fraud Wilson says they are seeing is check washing. This occurs when a legitimate check is stolen and information on it, such as the payee or amount, is altered. 

There are also counterfeit checks, forged or altered checks, fake check scams, and checks stolen from the mail. 

Mail theft is one area Wilson encourages customers to take seriously. A stolen check can give a criminal information they can use to create a convincing counterfeit. Other financial documents sent through the mail can also contain personal or account information. 

And fraudulent checks aren't always easy to recognize. 

Wilson said years ago, fraudulent checks were often much more obvious. Today, technology has made it easier to reproduce the appearance of legitimate checks. Sometimes the difference may be something small, such as information appearing in a slightly different location or a check being written to an unfamiliar person or business. 

Know What Is Normal for Your Account 

First Federal uses technology to help identify checks that differ from a customer's previous activity. Potentially suspicious items can be reviewed by the Data Processing team and escalated for a closer look. 

That review may include comparing the check with previous checks written from the account. If something doesn't look right, the branch may contact the customer to confirm whether the check is legitimate. 

Customers can provide another important layer of protection by knowing what is happening in their accounts. 

Wilson recommends regularly reviewing transactions through Online Banking rather than waiting for a statement. Account alerts can also help customers notice unusual activity sooner, while electronic statements can reduce the amount of sensitive financial information traveling through the mail. 

If Something Looks Wrong, Act Quickly 

If you notice a check you don't recognize, an altered amount or payee, or another transaction that doesn't look right, Wilson's advice is simple: contact your bank immediately. 

“First thing, I mean, drop everything and call your bank,” Wilson said. 

After finding suspicious activity, review previous transactions too. Wilson explained that fraudsters may attempt a smaller transaction first to see whether it goes unnoticed before trying something larger. 

Check fraud has changed considerably during Wilson's 33 years at First Federal, but one of the most important ways customers can protect themselves remains simple: pay attention. 

Regularly reviewing your accounts, protecting your financial information, and acting quickly when something doesn't look right can help catch fraud sooner.