In an age dominated by digital payments, check fraud may seem like a relic of the past. But check fraud continues to plague both businesses and consumers alike. In 2023 alone, check fraud amounted to approximately $20 billion in losses—with the numbers expected to surpass $25 billion this year, signaling a growing, not diminishing, challenge for the industry.
The Nationwide Surge in Check Fraud
The COVID-19 pandemic reignited interest in check fraud as a lucrative crime, when U.S. federal and state governments issued roughly 76 million stimulus relief checks to eligible Americans. While checks made up only a small percentage of total stimulus payments, it was enough to signal the untapped potential for paper check fraud. According to the Federal Reserve, since that time, check fraud has increased by an astonishing 385%.
Even more concerning, a recent study conducted by the Financial Crimes Enforcement Network (FinCEN) revealed that of the 15,417 Suspicious Activity Reports (SARs) filed over the past six months, an alarming $688 million were linked to mail theft.
Fraudsters have even begun to exploit social media platforms such as TikTok, with users posting videos that claimed to reveal a “glitch” in Chase Bank’s ATM system—only to discover it was a classic case of check fraud involving the deposit of fake checks.
Ingo Mobile Check Cashing – Guaranteed Protection for Clients and Consumers
For over 23 years, Ingo Money has been at the forefront of check deposit risk management, providing turn-key check-cashing solutions for leading financial brands such as Regions Bank, ADP, GreenDot, and Incomm, as well as directly through our proprietary Ingo Money App.
Since launching our mobile check-cashing solutions 11 years ago, we’ve remained committed to providing a non-revocable funds guarantee. This means that once a check is accepted and cashed using our service, the money stays with the check casher, even if the check is returned or later found to be fraudulent.
Despite the nationwide surge in check fraud, Ingo has kept its check fraud losses stable. Even during the peak of the pandemic, when fraudulent activity surged across industries, Ingo did not experience an increase in losses. While fraud attempts grew by 145% in 2021, we continued to confidently approve more transactions.
In fact, since 2021 Ingo has increased its first-time check casher approval rates by 25%. This is significant considering that first-time check cashers carry considerably higher risk, with losses five times higher than repeat customers. Yet, due to our proactive fraud detection systems and risk management strategies, we’ve been able to consistently mitigate these risks, while driving revenue growth for our clients.
A Hybrid Defense: Merging AI and Human Expertise
Today, the check risk management industry touts the power of AI and machine learning, but at Ingo, we believe it’s the combination of human expertise and cutting-edge technology that sets us apart.
Our AI-powered tools, including advanced data sources, device identification, and behavior analytics, are invaluable to our success. But these systems are only as good as the people behind them. Fraudsters are constantly evolving their tactics, and while AI and machine learning models must learn from new data to adapt, waiting for these systems to catch up and teach themselves can be costly.
This is where our team of seasoned analysts, each with an average tenure of 12 years, comes into play. Our experienced team detects and mitigates fraudulent transactions in real-time, often manually reviewing transactions and performing visual inspections of check images, identifying early signs of fraud before it can escalate.
For instance, a 10-second review of a suspicious check image might reveal the beginnings of a larger fraud ring, allowing us to act quickly and prevent further damage. We then feed this information back into our AI models to ensure they stay updated with the latest trends.
Our Investigations team consistently analyzes data and monitors fraud trends, identifying emerging patterns as they arise. These daily reports are shared across teams, creating feedback loops that improve detection skills and strengthen our defenses.
When new fraud tactics bypass existing systems, our teams collaborate to devise both temporary and long-term solutions—an agile approach that allows us to adapt to new threats swiftly, minimizing the risk while permanent technology-based solutions are developed.
Finally, our team of Customer Experience Specialists provide customer service that goes beyond industry standards. Through these interactions, we gain invaluable insights into consumer behavior and preferences, which we feed back into our fraud prevention strategy.
Looking Ahead
Despite technological advancements, check fraud isn’t going away anytime soon. As fraudsters evolve their tactics, businesses and consumers must remain vigilant. At Ingo, we believe that while technology is an indispensable tool in the fight against fraud, it’s our people—their experience, expertise, and adaptability—that set us apart. Looking ahead, we will continue to evolve by combining human intelligence with cutting-edge AI to stay ahead of emerging threats, safeguarding financial transactions and protecting our clients.
