Latest news with #checkfraud
Forbes
16-07-2025
- Forbes
What To Do If You Become The Victim Of Identity Theft
Fraud case news headline in newspaper getty I study fraud and cybercrime for a living. Then I became a case study. I've spent years as part of the fraud-fighting community, publishing academic research, sharing insights almost daily on LinkedIn, and speaking at conferences around the country. While much of my work to educate and raise awareness has been embraced, not everyone is a fan. In 2022, after I publicly reported on the alarming rise of check fraud in the U.S. and spoke with several major media outlets, I became a target. The first text message arrived around 7 a.m. I initially dismissed it. But the second message was far more explicit and wasn't just a vague threat—it was personal. My full Social Security number, home address, and a direct warning: ' got your addy, know where all y'all live. stop looking into the check fraud or your credit going low. Screenshots of first (left) and second threatening text messages received on my personal cell David Maimon Concerned for my safety, my university immediately assigned a campus police officer to accompany me wherever I went. While this measure helped deflect any potential physical threats, something more insidious was already in motion. The same criminal actor who threatened me via text had posted my full identity—name, SSN, DOB, address, even my credit report—to one of the underground fraud forums my team had been monitoring. While this exposure was deeply unsettling, it also presented a rare and valuable opportunity: for the first time, I could observe, up close and in real time, how quickly leaked identity data gets exploited by fraudsters. Most leaked personal data, whether stolen from breaches, checks, phishing attacks or malware, circulates through opaque and decentralized criminal networks. The data is often sold or shared in encrypted Telegram groups, invite-only forums, or dark web marketplaces with no clear timestamps. Because of this, researchers rarely know when an identity was first listed for sale or accessed by bad actors. On the other end, when that identity is eventually used to commit fraud—say, to open a bank account or apply for credit—it might not be detected for weeks or even months, if at all. Even if you know when an identity was leaked, matching it to a fraud attempt is nearly impossible. Institutions (financial firms, credit bureaus, government agencies, and public databases) operate in silos. There is no centralized system to link the moment of exposure to the moment of exploitation. Without visibility into the dark web and cross-platform monitoring, it's nearly impossible to draw a clear, causal line between when an identity is posted for sale and when it's exploited. To complicate matters further, linking a fraud attempt to a specific leak often requires access to sensitive internal records—such as KYC data or transaction logs—that are protected by privacy laws and corporate policies. The result is a murky, delayed, and ethically constrained landscape, where timelines are incomplete and attribution is uncertain. Unless the identity in question happens to be your own. A Front-Row Seat to Fraud: The First 96 Hours At exactly 9:56 a.m. on March 29, 2022 — minutes after receiving the second threatening message — my personal information was leaked to a Telegram fraud group: full name, address, SSN, date of birth, and even a PDF of my credit report. I began searching online fraud markets to see if my information had been posted. I found it almost immediately. I alerted my identity theft protection provider, then sat and waited. Within a couple of days alerts started arriving. These alerts suggested that by March 30 — less than 24 hours after the leak of my identity — fraudsters had used my identity to attempt to open accounts at multiple financial institutions, as well as pull my credit report. Working with a victim specialist, we carefully reviewed the suspicious activity and flagged each questionable inquiry. In total, 10 alerts arrived within that first day. I also requested my ChexSystems report to track any new bank accounts opened in my name (ChexSystems is a consumer reporting agency that tracks deposit accounts across U.S. financial institutions). When that report arrived, it showed six fraudulent accounts had been opened within four days of the leak. Screenshot of my personal identifiers as appeared on the First Telegram Group Which Shared it. David Maimon One account in particular stood out: as if to make a point, the fraudsters had gone so far as to mail a debit card linked to one of the fraudulent accounts directly to my home address. The card bore my name and came with a phone number I was supposed to call to activate it. ChecXsystem report of bank accounts created using my stolen identity David Maimon Debit Card received in my residence as a result of fraudsters using my identity to create a new bank ... More account David Maimon After the Storm: Analyzing the Long Tail of Identity Exploitation After that first month, things went quiet. The alerts stopped, and I assumed the worst was behind me. I was wrong. Just a few weeks ago, a letter arrived from the Lifeline Support Center in New York. For context, Lifeline is a federal program that provides monthly subsidies for phone or internet services to low-income individuals. According to the letter, someone had used my identity to apply for these benefits, and I was now being asked to upload supporting documents to complete the application. I had never applied for Lifeline. This was a clear signal: my stolen identity was still actively being used, this time to exploit a government assistance program. Realizing I'd grown complacent, I decided to dig deeper—this time using more sophisticated tools and data sources to see what was happening in the background. With access to internal databases from SentiLink , a major identity verification and fraud detection company I work with, I searched for any records of identity theft attempts tied to my name and Social Security number. What I found was eye-opening. In total, there were 5 incidents in March 2022, three in April, two in May, then one in August 2023, and another in April 2024. Zooming out, several patterns in the fraudsters' behavior began to emerge. First, most of the applications used freshly-created email addresses, likely spun up for the express purpose of the fraud, and cycled through different contact details. Across the board, there was a consistent rotation of emails, phone numbers, and physical addresses, likely designed to evade identity verification systems. Interestingly, while some fraudsters used burner phones or untraceable contact information, others left behind real, personally identifiable phone numbers — even as they were in the act of identity theft. Second, the fraud attempts showed how broad and adaptive the strategy had become. My identity had been used to apply for everything from consumer loans and property leases to telecom services, federal benefits, and even a tax-related service. Third, the volume of activity slowed over time. By mid-2022, the pace had noticeably dropped — perhaps due to increased monitoring, the flagging of my data in fraud databases, or simply the reuse value of the leaked information. But in August 2023, a new and unusual application surfaced — one that included a traceable phone number. For the first time, I was able to link the fraud back to a specific individual. The applicant, who appears to live in New Jersey, has a lengthy criminal record, including charges for breaking and entering, assault, and battery. Then, in April 2024, my identity was used yet again, this time in connection with a tax-related service. Specifically, an account was created under my name with a tax preparation service, followed by an attempt to fraudulently file my taxes. Unlike the earlier flurry of activity, this attempt was targeted and seasonal, aligned with tax season, and likely designed to take advantage of high-volume government processing windows. One final and important note from my analysis: it does not appear that any organized fraud ring was behind the continued misuse of my identity. Instead, the pattern suggests individual actors — likely monitoring Telegram fraud channels — picked up my information and incorporated it into their own schemes. My data had become part of a wider fraud supply chain, passed from one bad actor to the next, each adapting it to their own criminal playbook. Most Recent Use of My Stolen Identity with the LifeLine Support Center in NY David Maimon What This Means for You My experience underscores a sobering reality: once your identity is exposed, you're not a one-time victim. You're probably a long-term asset in a criminal system where your personal data can be recycled, traded, and exploited for years. The fraud may come in waves, or return over time in stealthier, more targeted forms. If this happens to you, here's what I learned the hard way: Move quickly. File police reports, freeze your credit, and start monitoring, not just the three main credit bureaus (Equifax, Experian and TransUnion) but also the ones like ChexSystems that track checking and savings accounts. Stay Vigilant. Just because the alerts stop doesn't mean the fraud is over. It tends to linger, waiting for the next opportunity to surface. Use the right tools. Visibility matters. Strong identity monitoring tools can help you spot issues before they escalate. Track everything. I have the advantage of working in the fraud space, but anyone can watch for suspicious patterns — look at emails, phone numbers, account applications. Free tools and a little online sleuthing can go a long way. The initial incident is rarely the end. It's usually just the opening move. In this harsh reality, the most powerful protection isn't just a freeze or a lock — it's awareness and proactivity. Once your information is out there, you're not just guarding against fraud — you're managing an active threat that learns how to adapt. Staying on top of how your identity is being used isn't paranoia, it's a necessity.
Yahoo
09-07-2025
- Business
- Yahoo
ParaScript Launches New AI-Powered Check Stock Verification Solution
BOULDER, Colo., July 09, 2025--(BUSINESS WIRE)--ParaScript, an AI-powered document processing company, today announced the launch of a new check stock verification solution, an enhancement of the company's current check fraud detection capabilities. The AI-powered technology uses a combination of image analysis and pattern recognition to accurately detect counterfeit checks, alterations, or the use of unauthorized stock designs. Analyzing check stock, the preprinted elements of a business or personal check, is a critical step in identifying fraud, whether checks are deposited physically or remotely. Automating this verification process accelerates and improves fraud detection accuracy, reduces false positives and ultimately helps financial institutions cut fraud losses while enhancing customer experience. Built on a completely new AI foundation, the software takes a holistic view of each check by comparing the check stock, such as field labels, security features, logos, watermarks and similar components, against a verified reference image tied to the same account. This significantly improves detection accuracy, helping catch subtle changes that might otherwise go unnoticed. When inconsistencies are found, the technology will highlight specific areas of concern and allow for deeper investigation, saving financial institutions significant manual review time. "Check stock verification is a critical method for preventing check fraud," said Emiliano Giacchetti, CEO of ParaScript. "Our multi-layered verification approach gives financial institutions a faster way to verify the integrity of the checks and documents they process, helping them better protect customers from costly fraud, while freeing up resources to focus on growth and delivering exceptional service." ParaScript's check stock detection solution also works on non-check documents such as diplomas, certificates, contracts and licenses that contain consistent preprinted zones and use a predefined template or layout. About ParaScript ParaScript develops AI-powered recognition solutions that process over 100 billion documents annually and touch nearly everyone in the US who sends mail or writes checks. Leading financial institutions, government agencies, and corporations in the US, Europe, Latin America and Australia rely on ParaScript to automate their document processing, improving efficiency and accuracy, while reducing costs. Visit to learn more. View source version on Contacts frankie@ 678-781-7228
Yahoo
18-06-2025
- Business
- Yahoo
Federal Reserve targets fraud
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. The Federal Deposit Insurance Corporation, Federal Reserve Board and the Office of the Comptroller of the Currency on Monday proposed taking new actions to address payments fraud, especially paper check fraud, suggesting increased agency collaboration, more industry education and improved supervision. The federal bank regulatory agencies offered their request for public comment over the next 90 days, saying in a joint press release that they would also look for ways to work state regulatory agencies. 'Today's interagency announcement is a welcome first step in the efforts of the federal banking agencies to combat the increasing occurrence of fraud, particularly check fraud,' the Fed's vice chair for supervision, Michelle Bowman, said in the statement. 'While this has been a well-known problem for several years, efforts by regulators have been slow to advance, and seem to have done little to address this growing threat.' As part of the joint action, Bowman said in the statement that there needs to be a broader, coordinated approach to combating check fraud. She noted that she would work with state and federal agencies as well as law enforcement for the new effort. She cited financial institutions and consumers as suffering from check fraud. 'Check fraud has grown substantially over the past several years, resulting in harm to banks, especially community banks, and the consumers and businesses who are the victims of fraud,' she said. As part of the proposal, the regulatory agencies also said in the release that they would pursue more data collection regarding fraud and opportunities for information sharing. In addition, they would review ways to use the Federal Reserve Banks' tools and services in new ways as another means of reducing fraud. In March, President Donald Trump signed an executive order mandating federal agencies to stop using paper checks, partly because of rising fraud. The Fed's move comes a week after a bipartisan group of U.S. Senators pushed to address the growing problem of fraud in payments. They proposed legislation that would create a task force to study payment scams and suggest ways for lawmakers and regulators to combat them, along with formulating industry best practices. The bill, if it moves forward in Congress, would represent one of the first formal federal efforts to combat payments fraud amid a call from professionals in financial services for a national campaign against the multi-billion-dollar problem. Payments fraud has become well-documented scourge perpetrated not only through check fraud, but also via digital avenues involving social media, online commerce and mobile text messaging. Recommended Reading Senators push payments fraud task force
Bloomberg
16-06-2025
- Business
- Bloomberg
US Bank Regulators Launch Effort to Combat Surge in Check Fraud
US bank regulators are looking at ways to help consumers and lenders lower the risk of check fraud, which has surged in recent years. The Federal Deposit Insurance Corp., Federal Reserve and Office of the Comptroller of the Currency said in a joint statement Monday that they are seeking public comment on how to address check fraud and payment scams.
Fox News
18-05-2025
- Business
- Fox News
Check washing crisis fueled by AI and mail theft
Once considered an old-fashioned crime, check washing has roared back to life with alarming sophistication. Criminals are not just targeting personal checks anymore. They are exploiting every vulnerability in the mailing and banking system to cash in on stolen funds. As check fraud incidents continue to rise sharply across the country, it is more important than ever to understand how check washing works and what you can do to protect yourself. Here is what you need to know to stay ahead of the scammers. Check washing fraud happens when a scammer steals a check you have written, erases the ink using chemicals like acetone or nail polish remover, and rewrites it to a new recipient. Often, they will change the amount to something much higher. The altered check is then deposited or cashed, and the funds are drained from your account before you even realize something is wrong. Why it's dangerous: Unlike digital fraud, check washing often goes unnoticed until long after the damage is done. Because checks can take days or even weeks to clear through the banking system, criminals have plenty of time to deposit altered checks and move funds before victims realize anything is wrong. By the time the missing money is discovered, tracing it back to the scammer can be extremely difficult. This delay makes it critical to monitor your accounts closely and act quickly if you spot any suspicious activity. Since 2023, check fraud has exploded in the United States. The surge in fraud reports reflects more than just isolated criminal acts. Organized crime rings are increasingly turning to check washing as a hybrid crime, blending old-school mail theft with new digital tools like AI. Fraudsters now use advanced technologies to forge identities, alter check images and exploit gaps in banking security, making check washing more sophisticated than ever. As financial institutions strengthen cybersecurity defenses, scammers are targeting physical mail systems as a weaker link to bypass digital barriers. Real examples: s Fraudsters have adapted their methods to stay ahead of law enforcement and banks. Criminals are combining old techniques like mail theft with new digital strategies, making check washing harder to recognize and prevent without proactive security measures. Recent advancements in AI technology have made it easier for scammers to forge realistic-looking documents, generate convincing fake identities and create sophisticated phishing emails. AI-generated fake IDs and altered check images can pass basic verification checks that would have caught manual forgeries in the past. This shift means check fraud is no longer just a matter of stealing a physical check, but exploiting digital vulnerabilities at every stage of the banking process. Here are 14 essential protective measures to shield yourself from check washing scams. 1. Use a black gel pen: When writing checks, always use a black gel pen. The ink is much harder to remove compared to regular ballpoint pen ink. 2. Bring checks directly to the post office when mailing them: If using a mailbox, make sure to drop off your mail before the final scheduled pickup so it is not left sitting overnight. 3. Sign up for USPS Informed Delivery: Stay ahead by signing up for USPS Informed Delivery. You will receive digital previews of incoming mail so you can monitor for any missing items early. Learn more about why it's important here. 4. Monitor your bank accounts: Set up real-time alerts for check clearing and review your statements weekly to catch any suspicious activity. Also, ask your bank about any other fraud-prevention tools they offer to protect your accounts. 5. Switch to digital payments when possible: Use your bank's mobile app to deposit checks without mailing or physically delivering them, reducing the risk of theft or tampering. 6. Use checks with built-in security features: Choose checks printed on paper with watermarks, chemical-sensitive coatings or other security features that make check washing much harder. 7. Limit the information on checks: Avoid unnecessary personal details. Do not print your Social Security number, driver's license number or phone number on your checks. The less information available, the less a fraudster can use. 8. Store checks securely: Keep blank checks in a safe place. Store your checkbook in a locked drawer or safe, not in your purse, car or an easily accessible location at home. 9. Check your mailbox security: Install a locking mailbox. If possible, use a mailbox with a lock to prevent thieves from stealing outgoing or incoming mail. 10. Be cautious with endorsements: When endorsing checks, write "For Deposit Only" along with your account number to prevent others from cashing the check. 11. Enroll in identity theft protection with check fraud specialization: Choose services that specifically monitor for compromised check details on dark web marketplaces and alert you to suspicious check-cashing patterns. Identity theft protection services monitor your personal data across the dark web and public databases, alert you to suspicious activity and assist you in locking down your accounts if needed. See my tips and best picks on how to protect yourself from identity theft. 12. Invest in personal data removal services: Minimize exposure of sensitive details (like addresses or banking affiliations) that fraudsters could exploit for check-washing scams. Removing your personal information from these sites can help reduce your risk of becoming a victim. While no service can guarantee the complete removal of your data from the internet, a data removal service is really a smart choice. They aren't cheap and neither is your privacy. These services do all the work for you by actively monitoring and systematically erasing your personal information from hundreds of websites. It's what gives me peace of mind and has proven to be the most effective way to erase your personal data from the internet. By limiting the information available, you reduce the risk of scammers cross-referencing data from breaches with information they might find on the dark web, making it harder for them to target you. Check out my top picks for data removal services here. 13. Shred sensitive documents: Shred old checks and bank statements. Don't just throw them away. Shred any documents with sensitive banking information. 14. Report suspicious activity immediately: If you suspect check fraud or missing mail, report it to your bank and the U.S. Postal Inspection Service right away. 15. Use Positive Pay if you are a business: Positive Pay is a fraud prevention service offered by most banks to business customers. It works by matching the checks you issue with the ones presented for payment. If something doesn't add up, like a changed amount or payee, the bank flags it for your review before it's processed. You usually need to sign up through your bank, and there might be a fee, but it's a smart way to protect your business from check fraud, especially if you write a lot of checks. What to do if you are a victim If you think you have been targeted by check fraud: Time matters. The faster you act, the better your chances of recovering lost funds. Check washing fraud is growing rapidly, and criminals are becoming more organized and sophisticated. Simple habits like using gel pens, securing your mail and monitoring your financial accounts closely can make a big difference. Services like USPS Informed Delivery, Positive Pay for businesses and personal data removal tools provide added layers of protection. Identity theft protection services can also offer critical support if you ever become a victim of check fraud. Have you or someone you know experienced check fraud? Let us know by writing us at For more of my tech tips and security alerts, subscribe to my free CyberGuy Report Newsletter by heading to Follow Kurt on his social channels Answers to the most asked CyberGuy questions: New from Kurt: Copyright 2025 All rights reserved.
