The Underground Economy of Stolen Checks: A Growing Threat

Check fraud is on the rise due to the availability of stolen checks being sold in open forums on messaging app Telegram. Criminals steal checks from mailboxes or through inside jobs at post offices, then assume fake identities to open bank accounts and deposit the checks. The stolen checks are often washed and rewritten before being deposited and the process is repeated. The pandemic has seen a significant increase in mail theft complaints and financial institutions have reported triple-digit increases in check fraud. The Telegram forums selling stolen checks are easily accessible, and experts believe there may be millions of synthetic identity accounts waiting for illicit activities.