 Check fraud in the US cost American consumers and banks about $20 billion in 2010 and some argue that this system (checks) should have been eliminated a long time ago.Not only does eliminating checks reduce the probability of fraud but also reduce the costs of processing.Bank fraud in the US is covered under and refers to any attempt to defraud a financial institution for the purpose of obtaining money, funds, credits, assets or other property owned by the financial institution.