Check Fraud is Rising: What Businesses Need to Know in 2026

Published on June 24, 2026 | 2 min read | Webster Bank

Check fraud continues to increase across businesses of all sizes. As payment systems evolve, fraudsters are finding new ways to exploit gaps in traditional processes. Understanding the risks, and how to reduce them, is an important part of protecting your business.

Why Check Fraud Is Increasing

According to the 2026 AFP Payments Fraud and Control Report, 58% of organizations reported check fraud, despite the continued growth of digital payments.

Common check fraud risks include:

• Altered or counterfeit checks
• Stolen checks from mail or drop boxes
• Unauthorized check issuance
• Duplicate or redirected payments

As fraud tactics become more sophisticated, businesses need to be more proactive in how they monitor and verify payments.

Learn More About Strengthening Your Treasury Strategy

Check fraud is just one part of a broader treasury management approach.

Download The Modern Treasury Playbook to explore how stronger cash controls, payment processes, and fraud safeguards can support your business.

Download the Treasury eBook

How to Reduce Exposure to Check Fraud

Preventing fraud starts with building consistent processes and using the right tools.

Businesses can reduce risk by:

• Implementing Positive Pay to verify checks before processing
• Monitoring account activity regularly
• Establishing dual approval controls for payments
• Securing check stock and limiting access
• Verifying payment changes with known contacts

Even small process improvements can make a meaningful difference in reducing fraud exposure.

Strengthening Controls Across All Payments

Check fraud is often one sign of a broader need for stronger treasury controls.

Business Email Compromise continues to play a major role in payments fraud as well. The AFP report found that wire transfers were targeted by BEC in 63% of organizations, up significantly from 39% the previous year, highlighting how quickly fraud tactics are evolving across payment channels.

More than 75% of organizations said they have no immediate plans to stop using checks, reinforcing the importance of stronger fraud controls rather than eliminating checks entirely.

Taking a more comprehensive approach can help businesses improve visibility, streamline payments, and reduce risk across both paper and electronic transactions. This may include reviewing payment workflows, introducing automation where appropriate, strengthening internal approval processes, and maintaining consistent oversight of both incoming and outgoing activity.

Build a Stronger Foundation for Cash and Risk Management

Fraud prevention works best when it’s part of a broader financial strategy.

Explore The Modern Treasury Playbook for practical guidance on improving cash flow visibility, payment efficiency, and fraud protection.

Download the Treasury eBook

Takeaway

Check fraud is not just an isolated issue, it’s part of a larger shift in how businesses need to manage payments and risk.

With the right tools, processes, and oversight in place, businesses can reduce exposure and operate with greater confidence.