FBI & USPIS PSA: Check Fraud-Related Mail Theft Is on the Rise
- Mail theft continues to rise
- The ABA and Post Office have already teamed up to help fight back
- The FBI has now joined the fray
In last week's blog we relayed how, in response to rising rates of mail theft related to financial fraud, the American Bankers Association (ABA) and United States Post Office have teamed up in the fight against check fraud and "money mules," recognizing the significant threat they represent to consumers.
Recently the FBI engaged in this alert as well, issuing a very detailed warning to all who are sending or receiving checks via mail:
The FBI and USPIS are warning that check fraud is on the rise, with a significant volume enabled through mail theft. Suspicious Activity Reports related to check fraud have nearly doubled from 2021 to 2023. Fraudsters take advantage of regulations requiring financial institutions to make check funds available within specified timeframes, which is often too short a window for the consumer or financial institutions to identify and stop the fraud. As a result, the compromised checks clear, and the funds are withdrawn by the criminal participants before the fraud is detected.
This alert is getting national media attention as well via news reports, getting the information into living rooms across the country.
The Collaboration Factor
Cooperation between FIs, Fintechs, Law Enforcement -- enhanced by media attention -- can significantly enhance efforts to curb check fraud via collaborative actions, such as:
- Enhanced Information Sharing: Financial institutions and fintechs share real-time data and insights about emerging fraud trends, enabling quicker identification of suspicious activities.
- Advanced Technological Integration: Fintechs contribute innovative analytical tools and machine learning algorithms that detect anomalies in check transactions, which, when integrated with traditional banking systems, boost fraud prevention.
- Coordinated Investigations: By working closely with law enforcement, financial institutions provide vital evidence and support that leads to more effective investigations and prosecutions of fraudsters.
- Increased Public Awareness: Media attention helps educate consumers about check fraud schemes, encouraging vigilance and prompt reporting of suspicious activity.
- Stronger Regulatory Frameworks: The joint efforts can -- and do -- influence policy development, leading to improved standards and protocols that deter fraudulent practices.
That's not to mention Dark Web monitoring, which plays a pivotal role in reducing check fraud by providing proactive alerts, spotting trends, and enhancing investigations.
Combined with FI's deploying advanced technologies like image forensic AI to detect counterfeits, forgeries, and alterations, these collaborative actions and information exchanges create a robust defense against check fraud, reducing losses and safeguarding the financial system.