Check fraud didn't disappear when digital payments took over — it evolved. The most common pattern our fraud team investigates now isn't a forged signature. It's a legitimate check, altered after it was written, cashed before anyone notices the payee or amount changed.
How the altered-check pattern works
A check is intercepted in the mail or from an unlocked drop box. The payee name and dollar amount are chemically washed or carefully edited, then the check is deposited through a mobile app at another institution, often for an amount just under common review thresholds.
Why traditional review misses it
Manual check review catches obvious forgeries, but a professionally altered check on real stock, with a real account number, often looks legitimate to the human eye. By the time a business reconciles its statement, the funds have already cleared.
What actually stops it
- Positive Pay, which compares the check presented for payment against the check your business issued
- Payee Positive Pay specifically, which checks the payee name, not just the amount
- Moving vendor payments to ACH or wire where possible, reducing the number of physical checks in circulation
What to do if it happens to you
Call your bank immediately. Most deposit account agreements give you a limited window to report an altered or forged check, so speed matters more than most business owners expect.
