Check fraud is a huge problem that is getting worse, Paul Benda, senior vice president of the American Bankers Association, told CNBC for a recent news segment on crime The report noted that check fraud is one of the oldest financial scams, but has recently become “supercharged” as a result of messaging platforms like Telegram, which allows criminals to hide their identities behind anonymous usernames . The platforms allow people who steal checks from the post to connect with others who offer to take the checks to the banks so they can cash them. The latter are known as “walkers”.
Banks reported nearly 250,000 cases of check fraud across the country in 2021, according to data from the Financial Crimes Enforcement Network cited by CNBC. That number skyrocketed last year, with nearly 460,000 cases reported. Benda said banks need help to combat the rising tide of fraud. “We can’t do it alone,” he said. “We really need the Postal Service to improve mail protection. We really want law enforcement to step up their game and prosecute more of these cases.”
