H1 2024 Check Fraud Report: Geographic Trends and Threat Actor Patterns

The 2024 Check Fraud Report highlights a significant rise in check fraud across the United States, with an estimated $21 billion in losses in 2023 alone. The report analyzes nearly a million stolen bank check images from over 700 Telegram channels, identifying key patterns and trends. Key findings include the quick turnaround in check image posting on Telegram, the widespread impact across all states with a concentration on the Eastern Seaboard, and how reposted stolen bank check images can complicate fraud detection efforts.

H1 2024 Check Fraud Report: Geographic Trends and Threat Actor Patterns

In the latest 2024 Check Fraud Report, Recorded Future's Payment Fraud Intelligence team illuminates the disturbing rise in check fraud within the United States, which has seen a 90% increase in related suspicious activity reports from 2021 to 2023. This escalation corresponds to an estimated $21 billion in losses last year, spurred by an expanding local cybercriminal ecosystem leveraging platforms like Telegram.

Key Trends:

• Rampant Reposting on Telegram: The analysis reveals that 85% of check images shared on Telegram are reposts, indicating a chaotic landscape where checks are frequently advertised across multiple channels. This trend not only complicates the identification process for financial institutions but also highlights the organized nature of these fraud networks.
• Swift Sharing of Stolen Checks: Approximately 50% of stolen check images are posted within eight days of theft, emphasizing the speed at which stolen information circulates among cybercriminals. This quick turnaround time demands equally swift responses from affected parties to mitigate potential damages.
• Geographic Patterns Offer Insights: While check fraud impacts all 50 states, the Eastern Seaboard shows a particularly high density of incidents. Check data trends in metropolitan areas like New York City and Baton Rouge illustrate how many threat groups are likely conducting mail theft-related check fraud.

Mitigation Strategies:

Financial institutions can combat check fraud by:

• Educating customers on safer payment alternatives to traditional checks.
• Utilizing advanced data analytics, like Recorded Future’s Bank Check Data, to preemptively identify and block fraudulent activities.
• Collaborating with law enforcement to trace and prosecute the individuals behind these fraud schemes.

Outlook

Despite the decline in check usage nationally, check fraud remains lucrative for cybercriminals. Financial institutions' ongoing adaptation of check verification and anti-fraud processes will be crucial in curbing this persistent threat. As these institutions enhance their defensive measures, they protect not only their own interests but also those of their customers.

To read the entire analysis, click here to download the report as a PDF.