OrboNation Newsletter: Check Processing and Fraud – July 2025
NICE Actimize Report: Check Fraud Accounts for 52% of Overall Fraud-Value Attempts
In a recent press release, NICE Actimize published its annual report on fraud, based on 2024 data. The report, entitled "2025 NICE Actimize Fraud Insights Report, U.S. Retail Payments Edition," focuses on US payments, providing insight into market-specific fraud trends.
As a leading anti-fraud platform, NICE Actimize is a proponent of the multi-layered technology approach to fraud. In fact, through their X-Sight Marketplace, many financial institutions are now leveraging technologies from fintech vendors like OrboGraph to enhance their check fraud detection capabilities.
With this in mind, it's no surprise that checks are prominent in the report; check fraud accounts for 52% of overall fraud-value attempts.
While check fraud dominates in terms of value, the report reveals that checks account for only 21% of volume, indicating that each check fraud attempt is for a larger dollar amount than any other fraud attempt. NICE Actimize concludes that fraudsters are targeting different characteristics of each payment for fraud.
Most Common Financial Crimes in America: Where Does Check Fraud Rank?
In a recent Visual Capitalist article, author Julia Wendling takes on the task of ranking the top financial crimes in America. And, as you may have guessed, check fraud is ranked number 1 among most common financial crimes with over 521,000 monthly reports in 2024.
One of the key drivers of this surge in financial crime is the growing use of AI and modern technologies by bad actors to perpetrate fraud and money laundering schemes. While check washing is a common method for check fraud, many organized crime rings are adopting technology to streamline the process. With a single stolen check, a fraudster can create counterfeits through photo editing software and print dozens, if not hundreds, of counterfeit checks -- also known as check cooking.
Assessing the Fraud Challenges of Accounts Opened Digitally
Previously, NICE Actimize noted that new accounts were seeing 17X higher fraud rates. Well, banks are feeling the effects; according to the post, 65% of banks are more concerned about new account fraud in the digital channel compared to just one year ago. This is a valid concern, as the potential for more applicants is weighed against increased operational costs to manually review applications and the risk of new fraud tactics.
Paper Checks: Payment Substitutes are NOT Universally Reliable, According to Atlanta FED
Recently, data from AFP on business check usage noted that use of paper checks jumped from 75% in 2023 to 91% in 2024. Take On Payments, a blog sponsored by the Payments Forum of the Federal Reserve Bank of Atlanta, recently examined how innovations in payments acceptance play out in consumer check use.
Fraudsters Targeting #FraudFighters: Are They Starting to Panic?
#FraudFighters has become a badge of honor in the industry. From industry experts to social influencers, it's more important than ever to spread awareness of fraud and scams that are affecting business, financial institutions, and individuals.
One of the most polarizing #FraudFighters is none other than Dr. David Maimon. For over half a decade, he's been researching fraudsters and encrypted messaging apps that leverage the dark web, uncovering fraudster trends -- including check fraud. Over the past few years, OrboGraph has been privileged to partner with Dr. Maimon in our effort to better understand the fraud ecosystem.
Well, it appears that the fraudster hunter has become a fraudster target -- which begs the question: Are the fraudsters panicking?
94% of FIs and Their Customers Experienced Check Fraud According to Bank Director Survey
You read the headline right. According to a recent survey entitled Bank Director’s 2025 Risk Survey, 94% of respondents say that their bank or its customers have been directly affected by check fraud over the past 18 months.
Could Cryptocurrency be a Solution for Government Disbursements?
As reported in Payments Dive, the U.S. Treasury Department is facing significant pushback after revealing its plan to transition the federal government away from paper checks and towards electronic payments. In a June 30 letter, the Center for Taxpayer Rights expressed concerns that this change could prevent vulnerable, unbanked Americans from accessing critical tax refunds and Social Security benefits.
How the USPS Decision to Dismantle the Postal Police Caused Today’s Mail Theft Epidemic
The U.S. Postal Inspection Service (USPIS) was once a leader in preventing mail theft, but a series of misguided decisions has allowed a nationwide crime epidemic to spiral out of control.
In a recent article, Frank Albergo, National President of the Postal Police Officers Association, outlines how he feels the U.S. Postal Service "dismantled itself."
Should the Industry Revisit Fingerprint Requirement for Check Deposits?
Last week, OrboGraph's own James Bi was guest speaker at Finovifi's "Beyond the Vault" Webinar series, covering the check market, check fraud data and trends, and how FIs can tackle the challenges of both on-us and deposit fraud.
During the webinar's Q&A section, one banking professional brought up a practical solution that their financial institution has been deploying for decades wherein ALL check deposits require a fingerprint scan. As noted by the attendee, their bank has been able to reduce check deposit fraud and deter fake check deposits at their FI.
Acquiring and Retaining Small Business Accounts: Time for a Banking Refresh
Small and micro businesses (SMBs) make up over 99% of all U.S. businesses, but they are a largely underserved segment when it comes to banking. A recent survey by Deloitte of over 500 small businesses reveals that it's time for banks to rethink their small business offerings.
The survey found that SMBs are looking for banking providers that cater to their unique needs. While their product needs may be less complex than larger businesses, there is opportunity for banks to make available more value-added services to support SMBs as they grow.
Lack of Collaboration and Communication Hindering Payments Fraud Efforts
Payments Dive reports that financial institutions are facing a major challenge in combating the growing threat of payments fraud, particularly push-payment scams, business email compromises, and checks.
Part of the problem is that federal and state laws intended to protect customer confidentiality and thwart money-laundering may be interpreted in ways that hamper communication between financial institutions.
USPS Report Shows Ineffectiveness of New eLocks for Mail Theft
A major component of Project Safe Delivery -- the USPS Initiative to fight back against mail carrier and mailbox robberies -- is the installation of new electronic locks that can only be opened utilizing an electronic device with a specific code or frequency to unlock the mailbox. The scanner, known as the Mobile Delivery Device – Technology Refresh (MDD-TR), was meant to deter criminals, as it could be deactivated if reported stolen.
How Financial Institutions Can Help Push Payment Modernization to Businesses
Over the past few years, FIs, along with fintech vendors, have taken the initiative in pushing innovation and new technologies to modernize payments. While new payment rails get a majority of the attention, we can't forget that this also includes modernizing legacy payments like checks -- where AI and machine learning are streamlining and automating processing of paper checks.
Jack Henry & Associates: Check Fraud Tops Fraud Trends to Watch for in 2025
As financial technology continues to advance, fraudsters are finding new and sophisticated ways to exploit vulnerabilities and target financial institutions and their customers. A new Jack Henry Fintalk post takes a look at several key fraud trends emerging in 2025 that community banks and credit unions must be prepared to address.