Check and mail fraud are fast-growing threats that put businesses at serious financial risk. As financial institutions tighten security on digital payments, fraudsters are turning back to paper methods, making awareness and prevention more important than ever.
Check fraud and mail theft are growing concerns for businesses of all sizes, especially those still relying on mailed payments. When checks are intercepted, altered, or forged, the financial fallout often falls on the business, not the bank. That liability increases when a company fails to implement basic security measures or proper internal controls. In many cases, courts and financial institutions determine that negligence on the part of the business, such as using signature stamps or skipping dual authorization, makes them responsible for the losses.
A Midwest car dealership mailed a check for over $200,000 to a vendor, which was intercepted and altered. Thanks to full payee matching through their bank’s Positive Pay system, the fraud was flagged and the business avoided losses.
A New York-based crime ring used stolen USPS “arrow keys” to open mailboxes and steal checks. One deposit in July 2023 alone totaled $176,000 in altered checks. [READ THE FULL ARTICLE]
In Washington, D.C., a USPS employee named Hachikosela Muchimba stole and altered over 100 checks—mostly IRS tax refund checks—worth $1.6 million. He deposited the money into fraudulent accounts and funded a lavish lifestyle before being caught. He now faces up to 30 years in prison. [READ THE FULL ARTICLE]
These examples aren’t only happening in major cities, in June of 2025 an ex-postal carrier was arrested for stealing $30,000 in checks from his delivery route through arrow key theft. [READ THE FULL ARTICLE HERE]
So how exactly can a business become liable? First, if you mail a check that is intercepted and altered, your bank may not reimburse you unless you had security protocols in place. Second, if you receive a fraudulent check and deposit it, the funds can be withdrawn and later taken back, often leaving you with the loss. And finally, if your internal processes, like relying on rubber stamps for signatures or failing to verify vendors, are found to be negligent, the liability almost always lands on your shoulders.
To mitigate these risks, businesses should consider eliminating paper checks altogether in favor of electronic payments like ACH or wire transfers. In 2025 neKey invested considerable effort into adopting a fully electronic payment process. This process ensures the security and integrity of the payment process and dramatically minimizes our customers liability exposure. While no system can be 100% secure, we always strive to ensure our customers are exposed to the absolute minimum amount of risk.
Check fraud and mail theft are not just criminal issues, they’re business continuity threats. The legal and financial liability for losses typically falls on the business unless clear preventive measures were in place. By modernizing payment processes and enforcing internal controls, companies can protect themselves from becoming the next cautionary tale.
If your business still mails checks, you may be more exposed than you think. Criminals are targeting exactly that. You don’t need to overhaul everything overnight, but a quick conversation can show you what protections are realistic and effective.
You don’t need to overhaul everything overnight but a quick conversation can help you understand where the risks are and what realistic, effective protections look like.
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Dave Holak2024-07-24 11:29:422025-07-17 17:24:47Overcoming Common Challenges With Help From Cloud Migration Consultants