Despite the rise of digital payments, checks are still utilized by businesses and individuals alike. Check fraud has evolved and is a payment method highly associated with fraud. Criminals are now using advanced tools and methods to conduct check fraud scams.
Here’s a closer look at how these scams work and what you can do to help 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 mailboxes and “wash” them using chemicals or other methods to erase the original details. They then alter the check with a new payee or a higher amount or a combination of the two, often negotiating 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 counterfeit 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 fraudulent or duplicated checks through mobile banking apps and quickly move the funds before the check is returned. Once the check is returned, the money and the scammer are long gone.
How You Can Help Protect Yourself
While the tactics are evolving, there are simple, effective steps you can take to reduce your risk:
- Don’t mail checks from unsecure locations. Deliver them directly inside a USPS Post Office.
- Whenever possible, pay electronically. Fewer physical checks mean fewer opportunities for fraud. Online bill pay and ACH transfers are alternatives to writing a check.
- 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. Shred all documents that have financial or personal information.
- Monitor your accounts regularly. Set up alerts for unusual activity and report anything suspicious immediately to your bank or financial institution.
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 check fraud, the best defense is often your own awareness.
By reducing your reliance on paper checks, using secure mail services, and keeping a close eye on your accounts, you can help protect yourself from even the most advanced scams.
