Since the circulation of paper checks, fraudsters have sought ways to steal information and funds from consumers and businesses, and instances of check fraud have increased in recent years. According to the Financial Crimes Enforcement Network, there were over 680,000 reports of check fraud in the United States in 2022.  

What is Check Fraud?

Check fraud is the act of producing, forging or stealing checks to illegally gain money. This is commonly done by altering a legitimate check for a different amount or recipient, printing a counterfeit check for an unauthorized account, or forging details on a stolen check.

One direct way for consumers and businesses to prevent check fraud is to eliminate the use of physical checks when possible.

Combatting Check Fraud for Consumers

Setting up Direct Deposit and Bill Pay helps eliminate most consumer needs for checks.

1. Direct Deposit is an electronic way to deposit payroll, Social Security and retirement benefits into a bank account. Contact your local branch to complete the Direct Deposit Authorization Agreement.
2. Bill Pay allows you to pay your bills online with a one-time payment or scheduled automatic payments. Play the Navigating Bill Pay video to learn about setting up these electronic payments with Peoples Bank’s online banking. Many utilities (e.g. cell phone and power companies) also allow you to pay directly via their websites.

Combatting Check Fraud for Businesses

Using Remote Deposit Capture and Positive Pay helps eliminate most business client needs for checks.

1. Remote Deposit Capture allows clients to scan checks electronically using a check scanner machine or mobile device, which gets sent to Peoples Bank for posting and clearing. Play the Remote Deposit Capture videos to learn more about this feature.
2. Positive Pay is a cash management service used to detect and prevent fraudulent check transactions. Business clients provide the bank with a list of authorized ACH debit originators. If any check transaction outside the accept list tries to occur, the client will be notified and asked to approve or reject the transaction, as well as provide verification of key details. Play the Positive Pay videos to learn more about this feature.

In addition, all clients should be cautious of any phone call, text, email or link/attachment requesting for your security code, banking credentials, debit/credit card number or to conduct banking transactions. If you’re ever in doubt, contact your local branch or our Customer Care Center at 800.374.6123.