Check Fraud Is on the Rise: Here’s How to Protect Yourself
Even in today’s digital world, paper checks remain a common way to pay bills, send money, and conduct business. Unfortunately, checks are also a favorite target for fraudsters. One of the fastest-growing forms of financial fraud is known as check washing, a scam that can result in unauthorized withdrawals and significant financial losses if not caught quickly. According to the U.S. Postal Inspection Service, check washing schemes often begin with stolen mail, allowing criminals to alter checks and deposit them fraudulently.
At Century Bank, protecting your financial well-being is one of our top priorities. Understanding how check fraud works and knowing the steps you can take to prevent it can help keep your accounts secure.
What Is Check Washing?
Check washing occurs when a criminal steals a legitimate check and uses chemicals or other methods to remove the original payee name and dollar amount while leaving the signature intact. Once the information is erased, the fraudster rewrites the check with a different payee and often a much larger amount before attempting to cash or deposit it.
In some cases, criminals don't even need to physically alter the original check. They may create counterfeit copies using information obtained from a stolen check, including account numbers and routing information.
How Criminals Obtain Checks
Many check fraud schemes begin with mail theft. Fraudsters may target personal mailboxes, unattended outgoing mail, or mail collection boxes. Once they obtain a check, they can alter it or use the account information to create counterfeit checks.
Because a check contains sensitive information such as your name, address, account number, routing number, and signature, it provides criminals with valuable tools for financial fraud and identity theft.
Warning Signs of Check Fraud
While many victims don't discover fraud until they review their account activity, there are a few signs that may indicate a problem:
- A payment recipient claims they never received your check.
- You notice withdrawals or cleared checks for amounts you did not authorize.
- Your account balance changes unexpectedly.
- You receive notifications about suspicious activity on your account.
Regularly reviewing your account activity can help you identify unauthorized transactions before additional damage occurs.
Tips to Help Protect Yourself
The good news is that a few simple habits can significantly reduce your risk of becoming a victim.
Use Secure Mailing Methods
If you need to mail a check, consider taking it directly to the Post Office or placing it in a collection box shortly before the final pickup of the day. Avoid leaving outgoing checks in your residential mailbox for extended periods.
Use Permanent Black Gel Ink
Experts recommend using permanent black gel pens when writing checks because the ink is more difficult for criminals to remove during a check washing attempt.
Monitor Your Accounts Regularly
Review your account balances and transactions frequently through online banking or mobile banking. Early detection is one of the most effective ways to limit losses from fraudulent activity.
Consider Electronic Payment Options
Whenever possible, use secure digital payment methods instead of mailing checks. Online bill pay, electronic transfers, and other digital payment solutions reduce the risk of mail theft and check alteration.
Retrieve Your Mail Promptly
Don't allow incoming or outgoing mail to sit unattended. If you're away from home, consider having your mail held or collected by someone you trust.
What to Do If You Suspect Fraud
If you believe one of your checks has been stolen, altered, or used fraudulently, act quickly. Contact your financial institution immediately and report the suspicious activity. Depending on the situation, your bank may be able to stop payment, investigate unauthorized transactions, or help secure your account. You should also report mail theft to the appropriate authorities when applicable.
Stay Alert, Stay Protected
While check fraud continues to evolve, awareness remains one of the strongest defenses. By practicing good financial habits, monitoring your accounts regularly, and using secure payment methods when available, you can greatly reduce your risk.
At Century Bank, we're committed to helping our customers stay informed and protected. If you ever notice unusual account activity or have questions about fraud prevention, please contact your local Century Bank team. Together, we can help keep your finances safe.
Questions? Call us 505.995.1200
