An annual survey of treasurers and other finance executives conducted by the Association for Financial Professionals (AFP) in January 2025 yielded a surprising result: the proportion of U.S. companies using paper checks for payments rose significantly in 2024.

According to the AFP report released on April 15,the proportion of respondents reporting the use of paper checks for payments jumped from 75% in 2023 to 91%. The AFP publishes the annual Payments Fraud and Control Survey to understand the types of payments finance professionals use and the fraud they encounter that year. This year, the association seemed unable to explain the result.The report states: "While it is unclear why check usage increased significantly in 2024, some organizations may mistakenly believe that check payments are more secure than digital payments." The report notes that after reviewing annual data since 2015, "this view is clearly not supported."

In fact, check payments are the most commonly involved method in payment fraud. The AFP emphasized in a press release issued on Tuesday (April 15) that in 2024, 63% of respondents experienced attempted or actual fraud involving checks. This proportion is slightly down from 65% in 2023, but significantly lower than the 77% in 2014. The report suggests this may be related to a notice issued by federal authorities and widespread media coverage of mail theft leading to increased check fraud.

In fact, check payments are the most commonly involved method in payment fraud. The AFP emphasized in a press release issued on Tuesday (April 15) that in 2024, 63% of respondents experienced attempted or actual fraud involving checks. This proportion is slightly down from 65% in 2023, but significantly lower than the 77% in 2014. The report suggests this may be related to a notice issued by federal authorities and widespread media coverage of mail theft leading to increased check fraud.press releasethat in 2024, 63% of respondents experienced attempted or actual fraud involving checks. This proportion is slightly down from 65% in 2023, but significantly lower than the 77% in 2014. The report suggests this may be related to a notice issued by federal authorities and widespread media coverage of mail theft leading to increased check fraud.noticeand widespread media coverage of mail theft leading to increased check fraud.

Andrew Deichler, director of corporate payments practice at AFP, said in an email: "Our view is that more organizations are using checks because they have to in certain cases, or they are working with small organizations that use checks. Some organizations are in a position where they cannot give up checks." However, Deichler also noted that only 11% of respondents said checks account for more than half of their transaction volume.

Notably, the AFP report shows that about 75% of respondent organizations have no plans to reduce check usage in the next two years. The report speculates that some corporate managers may be returning to checks due to unfamiliarity with new payment technologies, believing paper payments are more secure, but this is not the case.

Despite the rise in check usage, other reports show a surge in electronic payment fraud. Data from the U.S. Federal Trade Commission (FTC) shows that in 2024, fraud complaints involving electronic payment methods exceeded those involving checks in both number and amount. According to the agency's analysis, bank transfer fraud caused losses of $2.08 billion last year, involving 47,336 complaints; while check fraud losses were $225 million, involving 8,098 complaints.

The AFP report also devotes significant attention to the digital payments space, noting that business email compromise (BEC) has become an emerging issue. Respondent member organizations ranked "business email compromise" as the largest source of attempted and actual fraud, with 62% of respondents reporting such incidents, down from 66% in 2023.

Nevertheless, Deichler, in an interview earlier this month withstated clearly that the association's position differs. He explained: "From the perspective of finance professionals, the data shows that fraudsters are targeting checks."stated clearly that the association's position differs. He explained: "From the perspective of finance professionals, the data shows that fraudsters are targeting checks."

The Trump administration is trying to push for a reduction in check usage, requiring the federal government tostop using checksby the end of September. The related executive order states that paper checks are vulnerable to fraud and inefficient.

Overall, in 2024, 79% of AFP members experienced some type of payment fraud, roughly flat compared to 80% in 2023 and close to the annual range of 73% to 82% since 2015.

The survey, conducted by AFP, headquartered in Rockville, Maryland, in January, received responses from 521 corporate finance practitioners from organizations of various sizes across multiple industries.