Highlighting the “Hotspots” For Check Fraud in the USA
- Major populated regions and business attract more check fraud
- A look at which states rank highest for check fraud per 100K population
- New tools offer a path to lower fraud incidents in the future
Back in May of this year, we wrote a post pointing out which regions of the USA were "hotspots" for mail theft/stolen checks. These hotspots were focused around large metropolitan areas, where we surmised a correlation with population and the number of businesses.
In a recent article by Visual Capitalist, author Jenna Ross and graphic designer Zack Aboulazm have created a visual map to highlight the regions in the USA that are hotspots for check fraud. Sponsored by Citizens Bank, the recent report "Check Fraud by State, Mapped," analyzes depository institution filings with the Financial Crimes Enforcement Network between September 2024 and August 2025, revealing geographical trends that underscore both the scope and shifting nature of check fraud risks.
US Regions with the Highest Check Fraud Rates
Adjusted for population, Delaware stands out with the highest rate of check fraud, reporting 1,793 incidents per 100,000 residents. South Dakota follows with 852 cases per 100,000. Both states are known as financial hubs due to their business-friendly regulations, making them attractive targets for fraudsters. In contrast, Idaho and Wyoming report the fewest cases, a trend possibly linked to their lower population density, which may reduce opportunities for criminal actors exploiting mail theft and check tampering.
When overlaying this map for stolen checks over a map of check fraud, you can clearly see that these two maps are nearly identical -- affirming the original data.
Nationwide, check fraud remains the most commonly reported type of financial fraud—accounting for nearly twice as many incidents as credit or debit card fraud, and 2.5 times as many as ACH payment fraud. These figures are prompting renewed attention from banks, regulators, and business owners.
Understanding Check Usage
As reported by Citizens Bank, almost half of U.S. companies still rely on checks -- lower than the indicated by the recent AFP Survey data. We can't say for certain, but -- without knowing the respondents -- we can only surmise that the groups vary significantly in terms of industry, number of employees, etc.
Ms. Ross notes that "companies say checks are critical due to contractor, employee, and vendor preferences, along with fraud concerns." However, "fraud concerns" is a misconception, as companies that continue to use checks are statistically more likely to become victims of fraud than those who have transitioned to digital payments.
However, while many pundits would like to make the transition from checks to digital payments appear simple and seamless, this is a fallacy -- here are just a few reasons:
- Most companies have a process for accounts payable, and the transition would take considerable internal resources to complete.
- Even after transitioning, other businesses or individuals would also need to accept that specific payment type (universal acceptance).
- Additionally, fees associated with digital payments create more costs.
Here is where we as an industry must ask ourselves: Is it feasible to eliminate an entire payment channel that produces 9-10B payments a year worth trillions of dollars? Or, is it more feasible to deploy the latest technologies and effectively reduce attempts and losses to less than 5%?
Financial institutions have available the technologies to protect themselves and their customers from on-us and deposit fraud. It's time to deploy them and stop check fraudsters.