If you’re someone who still receives paper checks for Social Security, tax refunds, or other federal benefits, there’s a big change coming your way. The Trump administration has taken a major step to move almost all federal payments to digital methods. This shift is expected to happen by September 30, 2025.
The goal? To cut costs, prevent fraud, and speed up payment processing. But while many people will easily adapt to this change, others—especially seniors or those with limited internet access—may face challenges.
What’s Changing and Why?
The U.S. government is now planning to stop using paper checks for most payments. This includes:
- IRS tax refunds
- Social Security benefits
- Other federal government payments
Instead, payments will be made through:
- Direct deposit into bank accounts
- Prepaid debit cards
- Other secure electronic methods
The move comes after alarming data showed a major rise in check fraud and mail theft. From February to August 2023 alone, over $688 million in check fraud was reported. Criminals were stealing Treasury checks directly from the mail system—including tax refunds, Social Security payments, and pandemic relief funds.
Real Cases of Check Fraud
Some serious cases have brought national attention. For example, two postal workers at JFK airport were caught stealing $4 million worth of government checks. The FBI and U.S. Postal Inspection Service have reported that mail fraud cases have nearly doubled from 2021 to 2023.
Here are the main ways thieves steal checks:
- Taking checks from mailboxes overnight
- Taking advantage of USPS blue drop boxes after the final pickup
- Inside jobs at postal centers
- Bribing or threatening postal employees
- Employees cooperating with criminals for money
What You Need to Do
If you still receive paper checks, you’ll need to switch to a digital payment method before September 30. Here’s how to prepare:
- Update your payment information on the IRS or Social Security websites
- Choose one of the approved electronic methods (bank account or prepaid card)
- If you’re not sure how to do this, visit a local SSA office or call their helpline
What If You Can’t Go Digital?
The government understands that not everyone has access to digital services. That’s why the order includes exceptions for people who:
- Don’t have a bank account
- Live in rural areas with poor internet access
- Face technical or physical limitations
In these cases, Treasury Secretary Scott Bessent has been given 180 days to create a plan with alternative options. You may need to fill out a form or provide a reason for continuing to receive paper checks, but you will not lose your benefits.
Why Is This Happening?
The White House says the main reasons for ending paper checks are:
- High costs of printing and mailing checks
- Increased risk of fraud and theft
- Slower processing time for payments
Digital payments are faster, safer, and more cost-effective. They also allow you to track your payments in real time, reducing the chance of losing your money or facing delays.