FinCEN Analysis: Nationwide Surge in Mail Theft Check Fraud

The U.S. Department of Treasury's Financial Crimes Enforcement Network (FinCEN) recently reported a significant increase in mail theft-related check fraud. According to FinCEN, financial institutions filed over 15,000 Bank Secrecy Act reports totaling over $688 million in suspicious activity in the six months following an alert issued by the agency in February.

FinCEN data indicate that banks filed 88 percent of all mail theft-related check fraud reports, while credit unions and securities/futures firms accounted for 11.5 percent.

FinCEN's analysis identified three primary methods used by perpetrators to defraud victims: altering stolen checks (44%), creating counterfeit checks (26%), and fraudulently signing them (20%). These criminals employed a variety of tactics, ranging from sophisticated schemes to simpler methods designed to avoid direct interaction with staff of financial institutions.