Even though we seemingly live in a paperless world, sensitive information is still sent by mail through the post office or package delivery services every single day. Criminals are well aware of this, too, unfortunately — mail theft has steadily been on the rise nationwide, with cases surging by 400% since 2019.¹

With the threat of mail fraud and theft looming in our communities, how can you and your loved ones stay vigilant and keep your mail from getting into the wrong hands? Our experts are here to answer all your questions.

What is mail fraud?

Mail fraud occurs when criminals take advantage of the mail system to attempt a scheme, particularly for financial gain. Mail fraud can take on many forms but most often occurs through scams tied to charities, sweepstakes, or investments. In these instances, criminals defraud citizens and businesses by mailing them deceiving literature that elicits an action, such as sending money or sharing personal information. By the time the victim becomes aware of the scam, it’s already too late.

In communities across the country, mail theft has also become a recurring plight. In many instances of mail theft, postal workers are targeted by criminals while on their routes. Criminals either take advantage of unattended mail trucks or rob postal workers for mail and arrow keys: keys that open any mailbox and allow them to continue stealing mail beyond the initial incident. Criminals are most often out to intercept checks, as well as items such as medical bills and banking statements that contain sensitive personally identifiable information.

Why is mail fraud so dangerous? What are some of its impacts?

As mentioned above, criminals are typically looking for money or personal information, much of which can be monetized. While not necessarily threatening as individual mail items, this personal information helps criminals build a profile of an individual that, when combined with other accessible information about that person, has the potential to be extensively damaging.

Financial loss is one of the most common effects of mail fraud. Depending on the extent of the scheme, victims of mail fraud can find themselves unable to pay their bills and afford everyday expenses while they await justice. Unfortunately, it isn’t always a given that mail fraud victims recoup the entirety of the funds taken from them — and even when their money is returned, the process can take weeks, or even months. Whether victims are out a few dollars or a few thousand, losing hard-earned money to criminals is something that no one should ever have to experience.

When personal information is compromised, there’s a serious risk of identity theft. As criminals sweep for social security numbers, account numbers, addresses, and other unique details about someone, they can then use that information to commit further fraud, such as opening new accounts in victims’ names or purchasing big-ticket items. In these scenarios, victims’ credit scores can be damaged as a result of the fraud, which adds further complication to an already inconvenient situation.

How do banks help victims of mail fraud?

While every financial institution handles fraud cases differently, we work to ensure a fair and efficient process for impacted customers.

To address check fraud, we have built a best-in-class team fully dedicated to resolving check fraud claims. There are three types of check fraud that are eligible for claims:

• Unauthorized signatures
• Forged endorsements
• Altered checks

Victims are issued provisional credit while our team verifies the claim and works with the bank of first deposit — where the criminal deposited the check — to recover the money.

“What separates us from other banks is that we’ll keep sending letter after letter to the bank of first deposit,” says Ray Olsen, senior vice president and director of enterprise fraud management at Wintrust. “Every 90 days, we’re going to send a letter following up on a claim. Because of that, our recovery rates are high.”

Do bank measures provide total protection from mail fraud?

Although banks often have sophisticated systems in place to catch fraud before it happens, customers still remain susceptible. Banks can play a major role in detecting and preventing fraud, but customers also share the responsibility of being properly prepared and protected.

“One of the biggest knowledge gaps we see regarding fraud is customers thinking the bank will take care of everything,” says Ezra Jaffe, executive vice president of treasury management at Wintrust. “If you don’t have the proper protection and don’t do your due diligence on a regular basis, the bank can only do so much. If you don’t have protection set up and something happens, you’re going to be spending hours upon hours fixing the systems that you have from future vulnerabilities on top of the work that comes with recouping lost funds.”

Can we protect ourselves and our businesses from mail fraud?

Fraud and theft aren’t going anywhere, but luckily, there are steps we all can take to protect ourselves and others. With all the recent advancements in digital banking, there’s no better time than now to embrace these tools and begin moving away from physical payment methods.

Rather than sending checks or cash through the mail, consider using apps such as PayPal or Venmo to send money easily. Not only are these tools safer and easy to navigate, but recipients also receive funds faster than they would from checks. However, if you absolutely need to mail a check, keep in mind that it’s safer to drop it off inside a post office than an outdoor collection box.

Additionally, the power of being proactive and progressive cannot be understated — as well as the importance of utilizing the resources at hand.

“Customers today need an attitude of constant vigilance,” says Jaffe. “We’re here to help educate them and change their attitudes. We also provide the products and tools to get away from paper checks and teach how to get systems in place that will prevent fraud.”

Get more information on scams and measures you can take to protect yourself by visiting our security page.

1. TCR Staff, “Mail Theft On the Rise Nationwide,” The Crime Report, November 1, 2022, https://thecrimereport.org/2022/11/01/mail-theft-on-the-rise-nationwide.