Information about Check Fraud
Basic Check Fraud Statistics
Here are some facts and statistics about check fraud compiled from various sources:
According to the 2013 Federal Reserve Payments Study:
* Checks (consumer and business) were the payment instrument with the highest average value of unauthorized transactions in 2012. The average unauthorized check transaction was valued at $1221, as compared to ACH at $730, ATM withdrawals at $217, general purpose credit cards at $138, and general purpose debit cards at $105.
Federal Reserve Payments Survey (Released 12/13)
2013 AFP Electronic Payments Survey findings show:
* 92% of organizations use checks when paying at least some of their major vendor/suppliers.
* The average company makes 43% of its payments to major suppliers by check.
2013 AFP Electronic Payments Survey (Released 11/13)
According to the iSMG 2013 Faces or Fraud Survey:
* 52% of organizations have experienced check fraud in the past year. This was the payment method experiencing the second highest level of fraud, behind credit/cards (66%).
* 51% of organizations report using "positive pay", debit blocks, and other limits on transactional use as a precaution to prevent payments fraud.
* Respondents included 200 Chief Information Security Officers, Chief Information Officers, Directors of IT and other senior leaders of financial services organizations.
iSMG, 2013 Faces of Fraud: The Threat of Evolution (Released 9/13)
2014 AFP Payments Fraud and Control Survey findings show:
* Checks remain the payment type most vulnerable to fraud attacks.
* 82% of organizations affected by payments fraud report that checks were targeted.
* Among organizations suffering a financial loss due to payments fraud, the typical loss was $23,100.
2013 AFP Payments Fraud and Control Survey (Released 3/13)
Survey results showed that 70% of B2B payments are still made via check.
Aite Group, “Remittance Details: When and How They Arrive for U.S.-Based Companies” (Released 7/12)
The 2013 ABA Deposit Account Fraud Survey reports:
* Fraud against bank deposit accounts cost the industry $1.744 billion in losses in 2012, according to ABA estimates. Debit card fraud accounted for more than half of 2012 losses (54 percent), followed by check fraud (37 percent).
2013 ABA Deposit Account Fraud Survey
“While the exciting and glamorous fraud topics today involve wire fraud, account takeovers, ID theft, and skimming, the results of the Association for Financial Professionals’ annual corporate fraud survey remind us that the most fraud vulnerable instrument available today is the paper check.”
Richard Oliver, Atlanta Federal Reserve Bank, May 2011