Scammers Target Mail with Check Washing Schemes, Officials Warn
Authorities report a surge in check fraud, with methods like 'check washing' costing consumers and businesses over $1 billion annually.
A significant increase in check fraud and mail theft is prompting warnings from officials and financial institutions, as scammers employ tactics like 'check washing' to steal funds. The U.S. Postal Inspection Service reports recovering more than $1 billion in counterfeit checks and money orders each year, and the U.S. Treasury’s Financial Crimes Enforcement Network noted that check fraud doubled between 2021 and 2023.
Check washing involves removing the ink from a legitimate check, altering the payee and amount, and then cashing it. This scam can affect individuals and businesses alike, leading to financial losses and identity theft concerns. Even payments mailed directly from a post office dropbox are vulnerable, as these locations are increasingly targeted by thieves.
To combat this growing threat, experts recommend several protective measures. Using a gel pen for checks can make the ink more resistant to chemical removal, though scammers are also using advanced technology to forge checks. Writing with firm pressure may also deter alteration attempts.
For increased security, consider paying bills in person whenever possible, such as at local government offices for property taxes or at company branches for credit card payments. While less convenient, this method significantly reduces the risk of mail theft. Online payments can also be an option, but consumers should ensure they follow best practices to avoid digital scams.
If mailing checks remains necessary, the U.S. Postal Service advises depositing them inside a post office rather than using exterior mailboxes. Additionally, residents are encouraged to collect their mail promptly to prevent information from being taken from home mailboxes. Placing a mail hold with the post office is also recommended when traveling.
Regularly monitoring payment statuses is crucial. Designating a weekly 'bill day' to confirm that all payments have been processed can help identify discrepancies quickly. Consumers who suspect fraudulent activity should contact their financial institution immediately to report the issue and work towards recovering any lost funds.