Question of the Week

Question: We are seeing more mail theft-related check fraud at our credit union. Is there anything we can do?

Answer: First, know you are not alone. Despite the declining use of checks, there has been a nationwide surge in check fraud schemes targeting the U.S. Mail. The Financial Crimes Enforcement Network (FinCEN), in close collaboration with the United States Postal Inspection Service (USPIS), just issued an Alert (No. FIN-2023-Alert003) regarding this topic that outlines several things you can do:

• File Suspicious Activity Reports (SARs) and reference the FinCEN alert in SAR Field 2, (i.e., “FIN-2023-MAILTHEFT”) and in the SAR Narrative. Then mark the check fraud checkbox (SAR Field 34[d]).
• Refer members who have become victims to the USPIS at 877-876-2455 or www.uspis.gov/report.
• Watch for red flags.  The FinCEN alert provides a list of red flags that could point to this type of fraud.    
• Educate your members regarding the risk of mailing checks and possible indications that checks drawn on their account may have been stolen or counterfeited. There are some fraud prevention tips and resources on the USPIS website.

Please see the alert in its entirety for additional information.