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Bankers association cites surge in check fraud as subcommittee gives mail‑theft bill a favorable report
Summary
A state House subcommittee heard testimony from the South Carolina Bankers Association citing rising mail‑theft–related check fraud and gave Senate Bill 357 (and its House companion) a favorable report so local prosecutors can pursue mail‑theft charges.
Chair Jeff Johnson presided over a subcommittee hearing that included testimony in support of Senate Bill 357, which would add a state crime of mail theft (South Carolina Code 16‑13‑190) with graduated penalties and allow local prosecutors to charge mail theft in appropriate cases.
Neil Rashley, general counsel of the South Carolina Bankers Association, told the subcommittee the problem has grown sharply and that the U.S. Treasury’s Financial Crimes Enforcement Network issued an alert on mail‑theft schemes. "Mail theft related check fraud generally pertains to the fraudulent negotiation of checks stolen from the U.S. mail," Rashley said, and he cited national figures in a recent period of more than 15,400 suspected mail‑theft check‑fraud reports totaling roughly $688 million. He also told members South Carolina bank reports more than tripled from 3,772 to 11,714 between 2021 and 2023 and described a Horry County case involving about 800 checks and nearly $2 million in alleged fraud.
Rashley said the bill mirrors federal elements but is needed because federal authorities do not always pursue every case and state law would give local law enforcement and solicitors authority to prosecute. "There is a federal (statute) without a doubt, but this is something to be able to allow local law enforcement, local solicitors the ability to also charge this in appropriate cases," he said.
After hearing testimony, the subcommittee ordered a roll call and reported Senate Bill 357 favorably; the clerk recorded multiple 'Aye' votes and the chair announced the bill receives a favorable report. The committee also moved to adjourn debate on House Bill 4144, the identical companion measure.
The subcommittee did not take additional public testimony beyond Rashley’s presentation. The chair said copies of submitted materials and amendments would be placed on the lectern for members. The committee adjourned with the mail‑theft bill sent forward as a favorable report.
