Check Fraud Isn’t Going Anywhere, Even as Check Usage Decreases It might be surprising, but check fraud continues to be one of the most persistent and damaging types of fraud we see, even as fewer people write checks. Total check fraud losses for 2024 are estimated to exceed $24 billion. In 2024, 61% of people said they still wrote or received checks. In 2025, that number dipped only slightly. Yet, nearly half of all respondents weren’t aware that mail theft is a key driver of check fraud. Even fewer knew that using a gel pen could help prevent check washing. Younger consumers showed higher-than-expected rates of check fraud victimization, possibly because they didn’t realize the risks. Small business owners continue to rely on checks more than most and face even greater exposure as a result. Education and real-time check fraud detection are important ways to strengthen the relationship between a financial institution and its customers. This is a chance for banks and credit unions to be seen as trusted advisors by offering clear guidance and solid monitoring tools. For example, advising customers not to mail checks from their home mailbox and to use in-branch drop boxes or digital payments instead can go a long way in preventing fraud. Pair that with real-time alerts for suspicious check activity, and you’re not only helping protect your customers, you’re also protecting your bottom line. Trust Still Breaks Down After Fraud One of the most consistent findings from the survey both years is this: people don’t always stay in a banking relationship, even when their financial institution resolves the fraud quickly. In 2024 and 2025 alike, nearly one in five respondents said they had switched banks or credit unions because of a fraud incident. Many more said they would reduce engagement even if they were satisfied with the resolution. It’s not just about how fast you fix the issue; it’s about how supported, informed and secure your customers feel throughout the process. That’s where communication makes all the difference. Whether it’s sending fraud alerts through the customer’s preferred channel or educating them on what to do next, consistent, clear messaging builds trust that lasts beyond the crisis. What Does All of This Mean for Your Institution What should financial institutions take from the shift in numbers between 2024 and 2025? Fraud isn’t just a technical problem; it’s a human one. People want to feel financially secure, and they want to understand how you’re helping them stay that way. They want you to be transparent about how you’re fighting fraud, especially when it comes to new technologies. When a client is a small business owner, they want tailored support that acknowledges the size of the risks they face. Institutions that respond with empathy, innovation and clear communication will not only reduce fraud losses but also strengthen client relationships. Final Thoughts: Turning Insight Into Action The year-over-year changes in Abrigo’s fraud surveys show us that while fraudsters’ tactics may evolve, your client’s expectations remain steady. They want to be protected, informed and know you have their back. For community banks and credit unions, this is more than a call to action. It is a chance to differentiate. The financial institutions that respond with smart fraud tools, transparent education and empathetic communication will not only reduce losses but also build the kind of trust that fuels long-term relationships, customer loyalty and community growth. Your fraud strategy should reflect your institution’s values, resilience and commitment to protecting what matters most. but the Stakes for Financial Institutions Remain High 13 Colorado Banker
RkJQdWJsaXNoZXIy MTg3NDExNQ==