American Express: How widespread is traveler’s check fraud?

Nowadays, those institutions that will accept Travellers Cheques will call and verify from the issuing authority as to when and where the cheques were issued. In most cases (for example) Amex will ask the person presenting to talk to them on the phone (to verify security questions like "How did you pay for these cheques? Or what was the name of your bank that issued these cheques), etc.

Very few businesses today accept them, with hotels being the primary customers (and mind you not every hotel today accepts them).