IS CASH GOING TO BE OBSOLETE?

President Trump has recently signed an executive order calling for the Federal Government to phase out all use of paper checks and switch to electronic payments, with some limited exceptions. In addition, the Federal Government will not be accepting paper checks, except in some limited exceptions. This will affect Social Security, tax returns, Veterans Disability payments, and any and all financial payments dealing with the Federal Government, which will be electronically sent and received beginning September 30, 2025.

According to many government officials, paper checks and money orders impose many unnecessary costs, delays, risks of fraud, lost payments, thefts, and inefficiencies.

This will definitely create challenges for older beneficiaries who will need help understanding the new system, as well as those whose internet access is limited. Also, those people who will need in-person help will face obstacles because of the many recent Social Security office closures.

Another issue that this move by the Trump administration is addressing is the issue of mail theft. Last summer two postal workers were arrested for the theft of 4 million dollars in U.S. Treasury checks at JFK airport. This was done between 2021 and 2023 and these checks included tax refunds, pandemic checks, and social security

.

The top five reasons you can fall victim to mail theft include the following:

1. Checks left in residential mailboxes overnight

2. Checks placed in blue collection boxes after the last pickup

3. Break-ins at USPS facilities

4. Postal service employees are getting robbed

5. Bribery and collusion of USPS employees

How bad has mail theft gotten? The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) reported in September that mail theft-related check fraud totaled more than $688 million between February 2023 and August 2023.

FinCEN’s analysis of the 15,417 reports related to check fraud identified three outcomes. Some 44% of stolen checks were altered and then deposited, 26% were used as templates for counterfeit checks, and 20% were fraudulently signed and deposited.