Despite the rise of digital money management, paper checks remain a part of our economy. However, this also means check-washing scams are still a threat. According to the National Check Fraud Center, these scams cost U.S. consumers $815 million annually. Often, victims don't realize they've been targeted until the damage is done. Here’s what you need to know about these scams and how to safeguard yourself.
How Check-Washing Scams Work
Check-washing scams involve criminals stealing checks from the mail, altering the payee name and/or the amount, and then depositing them into their accounts. These scammers typically:
-
Steal Checks: They swipe outgoing mail from personal mailboxes or use makeshift fishing tools to retrieve envelopes from public mailboxes. They specifically target envelopes that seem to contain checks.
-
Alter Checks: Using household chemicals like acetone or bleach, they erase the original ink on the stolen checks. They then rewrite the check with new payee information and amounts.
-
Deposit Checks: Finally, they deposit these altered checks into their accounts.
Some scammers take this further by using the account details on the checks to create counterfeit checks or fake IDs, driver’s licenses, and passports. Victims might only discover these crimes when they receive overdraft notices or find out their ID is invalid.
Check-washing scams are particularly insidious because they can go unnoticed for weeks or even months. Victims may only realize something is wrong when they review their monthly statements and notice discrepancies or when the intended recipient informs them that the check never arrived. This delay in detection is even more likely if the scammers deposit a check made out to "cash" without altering other details.
How to Protect Yourself
Both local and federal law enforcement agencies, including the U.S. Postal Inspection Service and the FBI, work to combat check-washing. They recommend the following precautions to protect your checks and personal information:
- Use Digital Alternatives: Whenever possible, opt for mobile and online banking services or peer-to-peer payment systems instead of checks.
- Choose the Right Pen: When writing checks, use black gel ink. Blue ballpoint pen ink is easily removable with acetone.
- Secure Your Mail: Avoid raising your mailbox flag for outgoing bill payments. Hand this mail directly to your carrier or mail it from the post office.
- Prompt Mail Retrieval: Collect your mail daily and never leave it overnight. If you’re traveling, arrange for the post office to hold your mail or ask a friend to pick it up.
- Use Security-Tinted Envelopes: These make it harder for thieves to identify and steal checks.
- Destroy Sensitive Documents: Shred or burn canceled checks, deposited checks, credit card statements, and bills to prevent them from being used fraudulently.
- Monitor Account Activity: Regularly check your bank account statements to ensure all checks have cleared for the correct amount and to the right payee. Most banks offer mobile apps and websites for easy monitoring.
- Store Checks Securely: Keep your checks in a safe place at home.
- Specify Payees: Write checks out to specific individuals or businesses and avoid making them payable to “cash.”
Check-washing can cause significant financial harm before it’s even detected. By following these tips, you can better protect your checks and your financial well-being. Stay vigilant and proactive to keep your personal information secure.