Check fraud’s hidden costs: Uncovering the true impact on consumers

This white paper, commissioned by Mitek Systems and produced by Datos Insights, reveals the true impact of check fraud on consumers’ financial stability, emotional well-being, and trust in the banking system. Despite the shift to digital payments, check fraud remains a persistent issue, affecting not only financial institutions but also individuals who rely on checks for essential transactions. In fact, 61% of consumers indicate that they would be likely, or somewhat likely, to leave their financial institution if unauthorized or fraudulent transactions occurred on their checking account. This white paper examines the full extent of check fraud’s consequences and outlines strategies that financial institutions can implement to better protect consumers and preserve trust. 

A few key findings in this report: 

• Check fraud leads to delayed fund access, unexpected fees, and emotional distress for affected consumers, often compounding financial hardships. 
• Financial institutions should leverage advanced fraud detection methods, like machine learning and image analysis, to minimize false positives and reduce disruptions for consumers. 

• Clear communication and consumer-centric policies can help alleviate the hidden emotional and financial costs of check fraud, building trust in the banking system.