Gov. Abbott signs new law fighting mail theft and fraud

In the 89th Legislative Session, Gov. Greg Abbott, Lt. Gov. Dan Patrick and Texas lawmakers passed and enacted legislation to combat mail-related financial crimes and the organized criminals behind them.

SB 1281, authored by Sen. Tan Parker and strongly supported by the Texas Bankers Association, updated the state’s mail theft statute to address current criminal trends, including large-scale theft of checks from the postal system and the growing black-market trade of stolen arrow keys used to access mailboxes.

“This new law attacks a problem that’s been plaguing community banks, their small business customers and Texans at their home mailboxes,” said TBA President & CEO Chris Furlow. “We’re proud to have worked with Senator Parker and our law enforcement partners to pass a solution that gives state and local authorities the power to intervene faster and to prosecute criminals more effectively.”

Check fraud losses tied to mail theft have doubled since 2021, with $688 million lost in 2023 alone. Texas banks have repeatedly sounded the alarm on cases where customer checks have been stolen, altered and cashed — some worth tens of thousands of dollars. In one case, a criminal was caught with hundreds of pieces of stolen mail in his car during a traffic stop in North Texas.

SB 1281:

• Expands the legal definition of mail theft to include mail still in transit, not just after delivery.
• Introduces a penalty structure tied to the number of stolen checks rather than the number of addresses, allowing more precise charges for large-scale operations.
• Creates a specific offense for the theft of U.S. Postal Service arrow keys — tools increasingly targeted in violent robberies.
• Includes a rebuttable presumption for theft involving five or more mail addresses — excluding legitimate business activities.

Last year, TBA’s Fraud and Security Task Force gathered data on the growing problem of check fraud and to assess the impact on communities. In January, TBA hosted a Fraud Solutions Summit to bring together bankers, legislators, prosecutors, leaders of the Texas Financial Crime Intelligence Center and law enforcement officials to map out a legislative package to address such crimes. 

SB 1281 evolved from the discussions. Law enforcement groups across Texas joined TBA in backing the bill, citing the urgent need for more effective state-level tools.

“This is another big win for Texas consumers and sends the message that, if you commit financial crimes in Texas, don’t expect a slap on the wrist — you’re going to prison,” Furlow said.

SB 1281 is one of five major fraud-fighting laws backed by TBA that will go into effect this fall.