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Chapter 4 discusses check fraud, a type of fraud that targets physical checks. Checks are vulnerable to forgery and fraud, making them the most susceptible payment method for fraud attacks. According to Ernst Young, checks accounted for 37% of fraud against bank deposit accounts, with losses totaling over $10 billion annually in the US. Criminals use various methods, such as stealing financial information from institutions, consumers, merchants, insiders, and bank employees. The most common check fraud method is counterfeiting by altering the MICR line on the check.