While check usage has declined over time, checks remain an important and trusted payment method for many consumers and businesses. Like all financial tools, checks can be targeted by criminals, which is why community banks like us, regulators, and law enforcement continue to invest heavily in fraud prevention, monitoring, and education.
By understanding how check fraud occurs and taking a few proactive steps, customers and banks can work together to keep accounts secure and financial systems strong.
What Is Check Fraud?
Check fraud occurs when criminals attempt to misuse checks or check information to access funds they do not own. Common types include:
Mail theft: Where checks are stolen before they reach their intended destination. It is important to note that this has become increasingly common in payments being sent to addresses in Carol Stream, IL.
Check washing: A process in which criminals use a chemical solution to remove the original writing, allowing them to put altered information on an otherwise legitimate check.
Counterfeit checks: Created using stolen account and routing numbers
Overpayment scams: Where fraudulent checks are used to trick recipients into sending funds back
GSB does our best to monitor for these threats and use layered controls to help detect suspicious activity before losses occur, but you are the first line of defense.
How You Can Help Protect Your Accounts
1. Utilize Alternative Payments Methods, When Available
- Automatic or online payment options available with the vendor (credit card company, loan company, utilities, etc.)
- Use GSB online banking Bill Pay
2. Secure Mail and Checks
Retrieve mail promptly and safeguard outgoing payments
Use USPS Hold Mail services when traveling
Deposit outgoing checks inside post office locations when possible
3. Write Checks Carefully
Use permanent black or gel ink
Fill out all fields completely
Avoid including unnecessary personal information such as SSN or Driver’s License Numbers
4. Monitor Accounts Regularly & Use Account Alerts Through Online Banking
- Review statements & transaction activity
- Regularly review your paid check images to verify that the checks cleared reflect the intended payee name and amount
- Use account alerts to spot unusual activity early
- Tip: You can set up an alert through our online banking and mobile app that will notify you any time a check clears, simply choose “Any check number cleared my account” when setting up alerts.
- Notify your bank promptly if something doesn’t look right
5. Be Cautious With Unexpected Payments
Be wary of requests to deposit checks for others
Avoid sending funds back from deposited checks until they have fully cleared
We encourage customers to contact us anytime questions arise, even if fraud is only suspected. We have a dedicated Fraud Specialist who is available to assist you.
Added Protections for Business Customers
We work closely with business customers to reduce fraud risk through both education and tools, including:
Encouraging businesses to limit access to checks and account information
Reconcile accounts and cleared checks frequently
Monitor outstanding checks that have been issued
Train employees to recognize fraud schemes
Enhanced services like Positive Pay, which helps verify checks before payment
These tools help businesses maintain efficiency while strengthening controls.
What Happens If You Suspect Fraud
If suspicious activity is identified:
Contact us immediately by calling any of our branches.
Report mail theft to the U.S. Postal Inspection Service.
File a report with the FBI’s Internet Crime Complaint Center (IC3).
- Monitor your accounts and credit closely.
Early reporting helps limit potential losses and protects the broader financial system.
GSB is Your Community Bank: A Partner in Protection
We are deeply invested in protecting our customers and communities. Through strong controls, advanced monitoring, and customer education, we work every day to ensure payments remain a safe and reliable option.
If you ever have questions about account security or fraud prevention, we are here to help.
