Posted on August 30, 2025

Check fraud is surging across the U.S., fueled by mail theft, sophisticated alteration methods, and rapid funds-availability rules that leave little time to detect fraud before losses occur.

• Reports nearly doubled from 2021–2023 (FBI & USPIS).
• 63% of organizations reported attempted or actual check fraud in 2024.
• 36% of all bank fraud involves checks—totaling $24–26 billion in losses annually.
• Common schemes include:
• Check Washing – using chemicals to alter payees and amounts.
• Check Cooking – digitally manipulating check images to create counterfeits.
• RDC Fraud – depositing the same check multiple times.
• Mail Theft – stealing checks from USPS facilities or delivery routes.

Impact on Financial Institutions

Financial institutions are under pressure to make check funds available quickly, often before fraudulent activity is detected. This creates a window for criminals to withdraw funds, leaving banks, credit unions, and payment processors with:

• Operational disruptions from processing fraudulent transactions.
• Reputational harm when customer trust is eroded.
• Financial losses from reimbursing victims.
• Increased compliance burden for fraud detection and reporting.

Our Solution

WesTech eSolutions, powered by ParaScript’s industry-leading AI technology, delivers multi-layered, real-time protection against check fraud—whether deposited physically or via Remote Deposit Capture.

Key Capabilities:

• Signature Verification: AI examines dozens of handwriting traits to detect forgeries.
• Check Stock Authentication (CheckStock.AI®): Verifies logos, watermarks, and field labels against reference images.
• Alteration Detection: Identifies tampering in handwriting, layout, and design elements.
• Seamless Integration: Works within existing workflows, both on-premise and via secure cloud SaaS.
• Faster Processing & Fewer False Positives: Reduce review times while increasing detection accuracy.

Business Benefits:

• Prevent fraud before checks enter the banking system.
• Reduce losses and investigative delays.
• Protect customer trust while streamlining operations.
• Scalable for both large and small institutions at a reasonable cost.

Let’s talk about securing your check processing.
Contact WesTech eSolutions today to learn how we can help you stay ahead of evolving fraud threats.