Featurespace Report: 54% of U.S. Consumers Report an Increase in Check Fraud Attempts in 2025
- Over half of U.S. consumers saw increased check fraud attempts, especially prior victims
- Consumers want stronger bank protections, proactive guidance, and better education on check fraud
- Financial institutions increasingly deploy AI, advanced analytics, and image forensics to combat check fraud
For #FraudFighters across the US, data has become a major weapon against fraudsters -- as they say, knowledge is power!
Featurespace, a trusted partner of OrboGraph, announced via LinkedIn a new report entitled Criminals Are Reinventing Check Fraud. Are Financial Institutions Prepared (downloadable in PDF form) to provide financial institutions new data on check fraud. The report examines in detail the rising threat of check fraud, its implications for consumers and financial institutions, and -- most importantly -- innovative solutions to combat it.
Rising Concerns About Check Fraud
While many reports focus on attempts and losses for the financial institutions, the report from Featurespace dives deeper, providing data from the consumer side.
According to the Featurespace report:
- 54% of U.S. consumers report an increase in check fraud attempts over the past year, while 72% of previous victims report additional attempts.
- 68% believe fraud attempts peak during holiday seasons when checks are commonly used for gifting.
- There is a strong demand for financial institutions to enhance protections against check fraud, with over 75% of consumers advocating for proactive guidance on prevention.
Indeed, check fraud remains a major concern for U.S. financial institutions, with 73% considering it a serious challenge and making its prevention a top priority in light of escalating losses. Following incidents of fraud, 70% of organizations have observed a rise in customer inquiries, although many cases still go unreported due to the stigma and embarrassment felt by victims.
Also, the issue extends beyond national borders, as check fraud can enable broader financial crimes worldwide, underscoring the need for a unified, cross-industry effort to address and mitigate its impact.
Tech Solutions and Innovations
The importance of AI and emerging technologies in fighting check fraud is widely recognized, with 84% of financial institutions acknowledging their critical role and many already incorporating such solutions into their security systems.
As noted in the report:
By embracing advanced analytics and fostering collaboration across the industry, we can build a more resilient financial system -- one that protect both institutions and consumers and supports ongoing innovation.
In addition to advanced analytics, it's vital for financial institutions to leverage other AI technologies such as image forensics, which analyzes check images to detect counterfeits, forgeries, and alterations for both on-us and deposit fraud detection.
Consumers are now seeing the surge in check fraud directly affect them. It's up to financial institutions to not only protect their customers but also educate them to shield themselves.