Check fraud has resurged sharply since late 2021, even as check usage declines. Financial institutions were caught off guard due to limited investment in modern detection tools and reliance on systems with high false-positive rates. Fraudsters exploit vulnerabilities through theft, alteration, and counterfeiting, often combining methods for greater impact. The volume of suspicious activity reports tied to check fraud more than doubled from 2021 to 2022. Financial institutions must overhaul both first- and third-party fraud frameworks using advanced image and behavioral analytics, and continuously adapt to evolving attack vectors to stay ahead of threats.

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