St. Louis, MO (July 26, 2023) According to the American Bankers Association, the number of check fraud filings in 2023 has skyrocketed, doubling since 2020. Check fraud is a criminal act that involves using a check without authorization or altering a legitimate check to steal money from an individual or business. First Mid Bank & Trust (First Mid) is working to educate the public on ways to protect themselves from this type of crime.
“Check fraud can take many forms, but some of the most common methods are the use of counterfeit checks, stolen checks, or altered checks,” said Barbara Nesler, Vice President, BSA & Fraud Officer at First Mid. “Recently, law enforcement and financial investigators have seen a rash of mailbox thefts and those are simply cases of criminals stealing other people’s bill payment checks out of the mail after you put up the red flag on your mailbox. Criminals are also stealing mail out of blue post office receptacles that may include checks. I always advise people if they need to send a check, take it directly to the inside of the post office, or use online bill payments whenever possible. If you ever lose a check in the mail, you may want to consider closing the account and opening a new one. It’s your money and you need to protect it as much as possible.”
Nesler, who is also a Certified Fraud Examiner and a Certified Financial Crimes Investigator, said that to ensure customers are protected, she works closely with local state and federal law enforcement agencies and other check fraud experts to stay aware of what current scams are out there. She also stated the recent rash of stealing checks from mailboxes is a form of identity theft. In those cases, criminals steal signed checks from mailboxes and alter the dollar amount and the name of the recipient. Then, they rewrite the checks to a new recipient and add in a larger sum before trying to cash the check.
“Check fraud is something individuals as well as businesses are vulnerable to and in many cases, we’re finding that it’s become more of an organized crime effort where criminals are trying to use the checks to withdraw significant amounts of money,” said Nesler. “I advise people to keep an eye on their spending habits, check their online payments, and double-check their statements. If you find any fraudulent or suspicious transactions, report them to your bank immediately. Fortunately, many banks including First Mid, are taking additional measures to prevent this type of crime.”
First Mid uses a check fraud prevention tool called Positive Pay to help flag any sort of suspicious fraudulent activity for its commercial clients. The service matches the account number, check number, and dollar amount of each check presented for payment against a list of checks previously authorized and issued by the company. All three components of the check must match exactly, or the bank will not pay. Despite having a fraud prevention tool in place, it is advisable for businesses to implement additional procedures such as reviewing checks exceeding a specific dollar amount to ensure their authenticity and guard against potential fraud.
With a team of dedicated fraud analysts, First Mid monitors any sort of suspicious behavior and different types of fraud on their customers’ accounts. To learn more about different types of fraud and how to protect yourself from becoming a victim, go to www.firstmid.com/fraud-information/.
About First Mid Bancshares, Inc.: First Mid Bancshares, Inc. is the parent company of First Mid Bank & Trust, N.A., First Mid Insurance Group, and First Mid Wealth Management Company. First Mid is a $6.7 billion community-focused organization that provides a full-suite of financial services including banking, wealth management, brokerage, Ag services, and insurance through a sizeable network of locations throughout Illinois, Missouri, and Texas, and a loan production office in the greater Indianapolis area. Together, our First Mid team takes great pride in providing solutions and services to our customers and communities and has done so over the last 158 years. More information about the Company is available on our website at firstmid.com.
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