Mail Theft-Related Check Fraud Trend Analysis

This Financial Trend Analysis report examines patterns and trends related to mail theft-related check fraud incidents, utilizing Bank Secrecy Act (BSA) data from February to August 2023. Issued by the Financial Crimes Enforcement Network (FinCEN), the report is a response to the Anti-Money Laundering Act of 2020, which mandates periodic publication of BSA-derived threat information. The analysis reveals that during the review period, FinCEN received 15,417 BSA reports linked to mail theft-related check fraud, involving transactions exceeding $688 million. The report identifies three primary outcomes of check theft: altering and depositing checks, creating counterfeit checks, and fraudulently signing checks. It highlights that banks filed 88 percent of the reports, with larger banks contributing significantly. The report also outlines the methodologies employed by criminals, which vary in sophistication, and notes the nationwide prevalence of this issue, affecting individuals and financial institutions alike.