Despite the rise of digital payments, check fraud hasn’t gone away. In fact, it’s evolving. Criminals are now using advanced tools like artificial intelligence, high-resolution printers, and email hacking to produce incredibly convincing fake checks.
Here’s a closer look at how these scams work and what you can do to protect yourself.
Common Types of Check Fraud
- Mail Theft & Check Washing
One of the oldest tricks is still one of the most common. Fraudsters steal checks directly from residential mailboxes and “wash” them using chemicals to erase the original details. They then rewrite the check with a new payee and a much higher amount, often cashing it before the fraud is discovered. - Counterfeit Checks
With account and routing numbers easily pulled from any check, scammers can use advanced software and printers to create near-perfect replicas. These fake checks can be used to make unauthorized payments or withdrawals that appear legitimate at first glance. - Mobile Deposit Fraud
Digital convenience comes with new risks. Fraudsters deposit fake or duplicated checks through mobile banking apps and quickly move the funds before banks can detect the fraud. Once the check bounces, the money and the scammer are long gone.
How to Protect Yourself
While the tactics are evolving, there are simple, effective steps you can take to reduce your risk:
- Don’t mail checks from your home mailbox. Use a secure USPS drop box or deliver them directly inside a post office.
- Whenever possible, pay electronically. Fewer physical checks mean fewer opportunities for fraud. Online bill pay and ACH transfers are safer alternatives.
- Use a gel pen when writing checks. Gel ink is more resistant to chemical “washing.”
- Shred old checks and financial documents. Dumpster diving is still a threat, especially when it comes to account information.
- Monitor your accounts regularly. Set up alerts for unusual activity and report anything suspicious immediately.
Stay One Step Ahead
Check fraud costs consumers and businesses billions of dollars each year. While banks, technology providers, and law enforcement continue working to prevent fraud, the best defense is often your own awareness.
By reducing your reliance on paper checks, securing your outgoing mail, and keeping a close eye on your accounts, you can help protect yourself from even the most advanced scams.
