What a $114,000 Mistake Can Teach About Payment Security
What if one paper check cost you your next job? Or your entire 401K? In construction industries, where large payments are routinely exchanged between Builders, Suppliers, and Trades, the risks are even higher. Despite the declining usage of checks, fraud continues to escalate, especially in B2B payments.
*Read the Yahoo Finance article here.
Check Fraud Is on the Rise
As Fraudsters continue to target high-value business checks, consumers aren’t immune. In one recent case, a New York man lost $114,000 after attempting to roll over his 401(k). Instead of using a secure digital transfer, Paychex issued a paper check that was intercepted and fraudulently cashed.
Between 2021 and 2023, the Financial Crimes Enforcement Network (FinCEN) reports that suspicious activity for check fraud doubled—and 2024 projections estimate over $24 billion in attempted fraud. The construction industry is especially vulnerable. According to a 2024 AFP survey from FinCen, 63% of organizations experienced check-related fraud this year alone. Construction remains heavily reliant on paper checks, making payments to subcontractors, material suppliers, and service providers easy targets.
This growing threat is already sparking change. Starting September 30, 2025, the U.S. government will eliminate paper checks for federal payments in favor of more secure digital alternatives. So, the question is—why haven’t Builders made the switch?
Read our latest blog on what this means for the construction Industry.
What This Means for Builders + Suppliers
Checks remain the most vulnerable form of payment—and the risks are only growing. In June 2025, the Federal Reserve, OCC, and FDIC issued a joint request for comment on financial fraud, specifically calling out check theft and scams as major concerns. Yet, despite rising threats, 70% of check users say they have no plans to stop using them.
With the USPS expected to cut an estimated 10,000 jobs, physical checks may remain in transit even longer, creating a wider window for criminals to intercept them. This increases the risk of check washing or the creation of counterfeit checks that are deposited into fraudsters’ accounts instead of your trusted business partners. These vulnerabilities and delayed bank responses leave your businesses exposed and could jeopardize your relationship with partners.
In today’s digital-first world, the consequences of sticking with traditional paper checks are real—delays, higher costs, and growing fraud threats.
A Better Way to Pay: Hyphen Wallet
Hyphen Wallet delivers a modern, secure solution for automating payments across the construction supply chain. By adopting our ePayment platform, your business aligns with the nationwide shift toward safer, faster, and more efficient payment methods.
Check fraud isn’t just a consumer issue—it’s a serious enterprise risk. Hyphen Wallet supports multiple secure payment options, including Real-Time Payments (RTP), enabling instant settlement instead of waiting days. The result? Eliminating paper checks not only reduces fraud risk, it also accelerates payment cycles and gives you real-time visibility into your cash position.
With Hyphen Wallet, Builders, Suppliers, + Trades can streamline their payment process with:
Don’t Let a Paper Check Derail Your Project
Security, speed, and compliance require modern solutions. Incidents like the recent check fraud case in NYC are preventable—and continuing to rely on outdated methods is a risk your businesses can’t afford. The government’s push toward real-time digital payments isn’t just policy—it’s a necessity. The construction industry doesn’t need to be held back by legacy systems. By transitioning to digital payments with Hyphen Wallet, you’re safeguarding your business, your partners, and your reputation.
Learn how Hyphen Wallet can help modernize your payment processes.
References:
- Yahoo Finance – NYC man lost $114,000 — his entire 401(k) — after his physical check from Paychex was stolen and cashed (2025)
- PYMNTS – Lawmakers Zero In on Check Fraud Crisis (June 2025)
- Federal Register – Joint Request for Comment by the Federal Reserve, OCC, and FDIC on Check Fraud and Payment Scams (June 2025)
- Banking Dive – Fed, OCC, FDIC Target Check Fraud (2025)
- PYMNTS – Trump Signs Order to End Paper Checks for Treasury Payments (2025)
- PYMNTS – Private Sector Takes Note as Feds Speed Digital Disbursements (2025)
- FinCEN (Financial Crimes Enforcement Network) – Suspicious Activity Reports on Check Fraud Doubled Between 2021–2023 (2024)
- AFP (Association for Financial Professionals) – 2024 AFP Payments Fraud and Control Survey
- The Clearing House – Amy Smith comments on increasing check fraud targeting businesses (2024)
- Business Payments Coalition – Check Fraud Needs a Rebrand (2024)
