With check fraud on the rise, learn what retailers can do to prevent losses and protect their operations.
According to recent reports, check fraud has skyrocketed nearly 400% across the United States. Criminals are using stolen checks, altered payee information, and fake accounts to deceive businesses—especially retail stores that offer check-cashing services.
Retailers who accept or cash checks often deal with fast-paced transactions and limited customer data, making them prime targets for fraud. Without proper verification tools, it’s easy to unknowingly accept a high-risk or fake check, which can lead to costly chargebacks and losses.
To keep up with the rise in fraud, here are essential steps retail businesses should take:
Real-time fraud detection can instantly evaluate check data against a live database to flag suspicious patterns. Retailers should integrate systems that verify account status, routing number legitimacy, and historical fraud indicators before approving any check.
Every business is different. Configure transaction limits and customize risk thresholds based on past activity, check volume, or customer type. This helps filter out potential fraud without slowing down trusted customers.
Many fraudulent checks are tied to accounts that have been previously closed or flagged. Automated alerts can notify you in real time if a check is drawn from a suspicious account.
Advanced risk scoring assigns a score to each check based on transaction history, account behavior, and fraud trends. This allows staff to make more informed decisions and reduces the chance of accepting a fake check.
Fraud tactics change rapidly. It's critical for retailers to stay informed through compliance updates, fraud alerts, and software tools that evolve with industry threats.
As check fraud continues to climb, retailers must shift from reactive to proactive strategies. With the right tools in place—including account validation, fraud scoring, and real-time alerts—businesses can confidently handle checks while minimizing risk.
We provide retailers with the tools to cash checks safely and prevent fraud in real time. Scalable, easy-to-use, and built for everyday business operations.