Tech Trends: Check Fraud Is Skyrocketing
Businesses Are Switching to ACH
One of the oldest financial crimes is back and thriving.
Paper check fraud surged nearly 400% in 2024, making checks one of the riskiest ways to move money today. Businesses that continue paying vendors, partners, or clients by check are putting themselves at serious risk.
From stolen mail to forged signatures and altered check amounts, fraudsters are targeting small and midsize businesses that lack modern protections.
So what’s driving this rise and why are more businesses switching to ACH (Automated Clearing House) payments as a safer, more secure alternative?
The Return of Check Fraud
According to the Federal Reserve’s most recent fraud survey, checks account for one of the highest fraud loss categories, far more than most digital payments. In fact, the American Bankers Association confirmed that check fraud and debit card scams top the list for fraud losses in business banking.
Why checks are such a popular target:
- They’re easy to intercept. Stolen mailboxes and check-washing schemes are on the rise.
- They contain sensitive information. Checks expose your account and routing numbers—perfect for scammers.
- They’re slow to process. This gives criminals more time to manipulate or forge them.
- They’re hard to track. Once cashed or altered, it can be difficult to reverse the damage.
In many cases, fraudsters don’t even need to steal your check; they just need a photo of it.
ACH: A Better Way to Pay
ACH payments offer a secure, reliable alternative to checks, with fewer fraud risks and better control. They move funds electronically from one bank to another, reducing exposure and making it easier to authenticate and monitor each transaction.
Why ACH Makes Sense for Your Business:
- Fewer fraud incidents: According to U.S. Bank, ACH fraud rates are significantly lower than check fraud.
- Faster payment processing: No more mail delays or manual deposits.
- More automation and less human error
- Easier to track, audit, and reconcile
ACH Done Securely
ACH payments are safer, but they aren’t invincible. Attackers are increasingly using phishing, business email compromise (BEC), and fake vendor updates to redirect funds to fraudulent accounts.
That’s why switching to ACH also means building the right internal policies to prevent fraud.
Nevtec’s ACH Security Checklist
Before going fully digital with your payments, here’s what we recommend implementing:
- Always verify account changes verbally. Never update ACH details based on email alone. Call a known contact using a verified phone number.
- Use multi-factor authentication (MFA) on email and financial systems.
- Create dual-approval workflows for large or first-time payments.
- Train staff on phishing, invoice scams, and vendor impersonation.
- Keep payment platforms and email systems updated with the latest security patches.
Start Paying Securely
Check fraud isn’t slowing down. If you’re still using paper checks to send or receive payments, you’re exposing your business to unnecessary risk. SECURITY AWARENESS
Nevtec can help you make the switch to ACH safely and efficiently, with the right cybersecurity measures, internal controls, and payment protections in place.
Schedule a consultation with Nevtec
We’ll help you design secure payment workflows, implement anti-fraud policies, and build confidence in your digital financial operations—so you can move money safely in 2025 and beyond.
