In today's digital age, traditional financial fraud continues. Despite the rise of digital payments, paper checks remain a cornerstone of B2B transactions, accounting for 33% of business payments as recently as 2023, according to American Bankers Association (ABA).
This ongoing reliance on paper checks makes them a significant target for fraudsters who use various methods to commit check fraud.
Perpetrators have developed intricate systems for altering financial instruments, using common household chemicals to modify documents while maintaining their apparent authenticity.
The check fraud process typically follows a calculated pattern:
1. Acquisition: Items are obtained, often through mail theft
2. Modification: Chemical processes are used to alter original information
3. Distribution: Modified items are circulated through seemingly legitimate channels
4. Monetization: Rapid fund transfers occur before detection
The altered documents may be sent through regular channels. For example, fraudulent checks are sometimes sent via the US Postal Service, often concealed in innocent-looking items like books or birthday cards. While postal systems have security measures, they primarily focus on items like drugs and firearms.
Financial institutions face mounting challenges in protecting their customers from these threats. The Finovifi specialized dark web team helps financial institutions combat financial fraud, protecting both the institutions and their customers. Our experts monitor illicit marketplaces, track suspicious activities, and help financial institutions prevent unauthorized transactions before they occur. Reach out to info@finovifi.com for more information.
