The 2025 AFP Payments Fraud and Control Survey, underwritten by Truist, revealed that 79% of organizations were victims of attempted or actual payments fraud activity in 2024. Checks continue to be the payment method most often subjected to fraud, as 63% of financial professionals experienced attempted or actual fraud via checks in 2024. Nevertheless, 75% of respondents have no plans to eliminate check usage over the next two years.

After reviewing the survey, AFP asked Truist for its analysis of the data around check fraud and what it could indicate for financial professionals this year and beyond.

BEC scams and other types of fraud schemes are becoming increasingly sophisticated as both businesses and consumers have become more aware of criminals’ tactics. As a result, some fraudsters appear to be reverting to older methods like stealing checks out of the mail and using them to commit fraud. Do you expect to see check fraud increase further unless companies decrease or eliminate check usage?

As noted in the survey, 75% of respondents indicate they do not intend to eliminate check usage. However, leveraging and reinforcing the utilization of fraud mitigation tools such as Payee Positive Pay will be essential in reducing check fraud occurrences.

The expectation is that check fraud will remain prevalent and trending downward as businesses become more adept in utilizing electronic payment disbursement options. Still, fraud tactics also are evolving. Criminals are becoming more sophisticated, and stolen checks are often sold online or used in organized fraud rings, making the impact broader and harder to trace. Digital alternatives are more secure. ACH transfers, wire payments and real-time payments offer stronger encryption and better fraud detection capabilities. Unless businesses modernize their payment systems and reduce dependence on paper checks, they will remain exposed to increasing fraud risks.

Is there any real advantage for companies to continue using checks, particularly for B2B payments?

While checks are increasingly being replaced by digital payment methods, there are still a few specific reasons some companies continue to use them for B2B payments.

• Control over payment timing: Writing and mailing a check allows a business to better manage cash flow and control when funds actually leave their account, which can be useful for companies with tight liquidity. It helps with cash flow management, especially for businesses operating on thin margins.
• Established processes: Many legacy accounting systems and workflows are built around check issuance. For companies with entrenched processes, switching to electronic payments can involve costly system overhauls and staff retraining.
• Documentation and audit trail: Physical checks offer a paper trail, which some companies find easier for audits or dispute resolution. Though digital systems can offer this, too, familiarity with paper processes still has appeal for some.
• Vendor preferences: Some suppliers, especially smaller or traditional ones, still prefer checks. Maintaining supplier relationships may require meeting their preferred payment methods.
• Avoiding transaction fees: Checks may incur fewer fees than credit cards or some digital payment systems. In large transactions, avoiding a 2-3% processing fee can save significant money.

What are you hearing from your clients about check payments? Do they want to keep using them?

We’re hearing from clients that continued use of checks for B2B payments centers around the lack of operational support, technology awareness and infrastructure to support electronic payments. Additionally, they feel that being able to present checks as part of their customers’ experience continues to be an added relationship benefit.

Why do some businesses (particularly smaller ones) believe that checks are a safer form of B2B payment? What is causing them to think this way when our survey shows that checks are always targeted heavily by fraudsters year after year?

For many small, established businesses, checks are a familiar and time-tested payment method. The familiarity with check disbursements can create a perception of security, especially among companies without dedicated IT or financial infrastructure.

Some smaller businesses believe checks are a safer form of B2B payments due to these key reasons:

• Perceived control: With checks, businesses feel they have more control over the payment process. They can deposit checks when they are ready, potentially avoiding the risk of insufficient funds, which can occur with electronic payments.
• Traceability: Checks provide a paper trail. Businesses can trace payment by reviewing the canceled check or bank statement, which is seen as reliable record for accounting purposes.
• Avoiding fees: Some small businesses prefer checks because they avoid transaction fees associated with credit cards, debit cards or online payment systems, especially for larger payments.
• Familiarity: For many small business owners, checks are a traditional and familiar method of payment. They have been around for decades, while digital payment systems are newer and can be perceived as less trustworthy.
• Delayed cash flow: For businesses that manage cash flow carefully, the delay in processing checks might actually be seen as a benefit, allowing more time to ensure funds are available before they are needed.
• Control over timing: Sending a check gives the payer more control over the timing of payment. Unlike electronic payments, which can be instant or scheduled automatically, checks allow businesses to manage cash flow more tightly.

For smaller companies that rely heavily on checks, what are some of the challenges they face when moving to ACH or other payment methods?

Smaller companies that rely heavily on checks may face potential challenges when converting to ACH and other payments methods, including the lack of technical infrastructure and an operational support model, fixed and variable costs and fees associated with setup. While ACH can be cheaper, some providers charge setup and per-transaction fees, whereas a cost-benefit analysis may bring into question the return on investment for other options. Smaller companies face several additional challenges when transitioning to alternative digital payment methods, including:

• Integration with existing systems: Smaller companies may have legacy accounting or payment systems that are not easily compatible with ACH or newer digital payment methods, and integrating these systems often requires technical expertise. They may also lack the necessary technology or IT infrastructure to handle ACH payments smoothly. They might need to upgrade their systems, which could be a hurdle for businesses with limited tech resources.
• Resistance to change: Many businesses may be comfortable with the traditional check payment method and may be hesitant or unfamiliar with how ACH works. There could be internal resistance from employees or even customers who are more comfortable with checks.

Do you expect to see mail-related check fraud increase in 2025 and beyond?

Mail-related check fraud has been a growing concern for years, and there are several factors that could contribute to an increase in this type of fraud in 2025:

• Increased reliance on physical mail: While digital payments are on the rise, many individuals and businesses still rely on paper checks for certain transactions. This reliance makes checks a target for fraudsters.
• Mail theft: The theft of mail, particularly checks, has been a persistent issue. Fraudsters often steal mail from residential mailboxes or from mail collection boxes and then alter or forge checks.
• Economic uncertainty: Financial difficulties or economic stress can drive individuals to commit fraud, and with rising concerns about inflation, supply chain issues and financial strain, more people might turn to illegal activities.
• Reduce risks: There is a growing focus on moving away from paper checks toward more secure and modern alternatives such as digital payments, electronic transfers and secure online banking. However, for those who still use checks, increased vigilance, stronger encryption and improved mail security could help mitigate the risks.

Do you believe that the federal government’s recent executive order to eliminate check usage, and/or efforts by payments industry stakeholders, will achieve any significant reduction in check usage in the next two years?

The recent federal executive order aiming to eliminate paper checks and the concerted efforts by payments industry stakeholders are poised to significantly reduce check usage over the coming years. However, achieving significant and widespread adoption of digital payments will depend on several factors, including the pace of implementation, accessibility of digital alternatives and supporting all user groups in transitioning away from paper checks.

Fifty-eight percent of organizations that pay by or accept check payments say that one reason for doing so is working with smaller businesses that prefer to use them. Have you observed any larger companies making a big push to persuade smaller vendors to pay by other methods?

Industry insights and observations indicate that larger companies are increasingly pushing smaller vendors to adopt digital payment methods. Driven by cost, efficiency and, especially, fraud reduction, this trend is particularly strong in many industry sectors, including healthcare, manufacturing and other B2B services. Notable influences include incentivizing smaller businesses with reduced fees; the use of automation platforms, application programming interfaces (APIs) and digital channels; and providing education and technical support for other payment options.

Businesses have been pushing for vendors to accept payments through digital platforms or their own proprietary systems. For smaller vendors, these shifts can sometimes be a challenge if they are not equipped with the technology or infrastructure to handle these new payment methods. However, over time, these changes can offer advantages in terms of efficiency, cost reduction and global accessibility.

As a bank, are you making any major effort to move your clients off checks? If so, what do those efforts entail?

Yes, Truist is making significant efforts to move clients away from using paper checks, primarily for reasons related to cost reduction, fraud prevention and efficiency. These efforts typically involve a combination of the following strategies to promote digital alternatives:

• Online bill pay through banking apps.
• Person-to-person payments (e.g., Zelle).
• ACH transfers for businesses.
• Mobile deposit and remote deposit capture to digitize incoming checks.
• Educational campaigns providing workshops and tutorials to educate clients on digital banking tools. These include fraud awareness, as we highlight check-related fraud risks and how digital methods can offer stronger protections.
• Targeted business tools, including integrated platforms for ACH, wire and recurring payments to reduce check use.
• Automation and API tools for automating accounts payable and accounts receivable functions that further diminish the need for manual checks.

For more payments fraud insights, download the 2025 AFP Payments Fraud and Control Survey Report.