In today’s digital age, where online transactions and digital payments dominate, it’s easy to forget that traditional paper checks are still widely used. While checks offer a sense of familiarity and convenience, they also pose significant risks, especially when it comes to check washing and mail check fraud.
How the Scam Works? You send a check in the mail as payment for a service or product. However, a few days or weeks later, you are contacted by the company you paid. They say they never received a payment. Then, you discover the check you sent has been cashed, either for the amount you wrote it for or for a much higher amount. Scammers use many techniques to intercept mail, sometimes directly from your mail box or the post office’s big blue mailbox. Once scammers find an envelope containing a check, they use household chemicals to “wash off” the name then replacing it with a different name and sometimes the dollar amount of their choice.
What is Check Washing? Check washing is a deceptive and illegal practice where criminals alter the details on a check to steal money. They often use chemicals or solvents to remove the ink from a legitimate check, leaving behind only the signature and account/routing numbers. The criminal then rewrites the check to a higher amount and cashes it, leaving the unsuspecting victim with a drained bank account. Criminals have also been known to leave the check amount the same as what was originally written making it even harder for the account holder to catch when reconciling their monthly statements.
Mail Check Fraud Mail check fraud involves intercepting or stealing checks from the postal system. Criminals may target mailboxes, post offices, or even the homes of unsuspecting individuals to steal checks. Once in their possession, they can manipulate or counterfeit the checks, depositing them into their own accounts or using them to make unauthorized purchases.
Protecting Yourself from Check Fraud
- Take advantage of electronic payment methods: If you can use electronic means to make payments and receive them, do so. That will eliminate the possibility of falling victim to check washing.
- If you must use checks, consider security checks: Opt for checks with advanced security features such as watermarks, holograms, and tamper-evident ink. These features make it difficult for criminals to alter checks.
- Mailing a check? Consider secure mailboxes: Ensure your mailbox is secure and consider using a P.O. box for sensitive mail instead of leaving a check in your personal residence mailbox with the flag up. Retrieve your mail promptly to reduce the risk of theft. You may also consider installing highly visible cameras near your mailbox to improve security.
- Keep an eye on your checking account: Monitor your bank accounts carefully and often to ensure no one cashes a fraudulent check against your account. Do not wait a month until you get your statement to review checks cashed against your account. If you notice suspicious activity, notify your bank immediately. You can also monitor your bank account regularly through online banking. Set up account alerts to notify you of any unusual or large transactions.
- Shred old checks: Properly dispose of old or unused checks by shredding them. This prevents criminals from obtaining your account information from discarded checks.
- Use Positive Pay services: Many banks offer Positive Pay services for business checking accounts. You can pre-authorize checks for a specific amount by their check number. This will at least stop scammers from withdrawing more money than the specified amount.
Check washing and mail check fraud are real threats that can lead to financial losses and identity theft. By taking proactive steps to protect your checks and monitor your accounts, you can significantly reduce the risk of falling victim to these crimes. Stay vigilant and informed to safeguard your finances in an increasingly digital world.