Protecting Yourself from Check Washing Fraud
What is check washing
Check washing is a check fraud scheme where fraudsters steal mailed checks and chemically erase the written details. They will then modify the payee and payment amount, often raising the amount to steal larger sums of money from the account holder.
What does a washed check look like?
At first glance, a washed check might look normal. Keep these details in mind when analyzing a check, including:
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Faded, discolored, or blotchy areas: The chemical solvents used in check washing to dissolve the ink often leave visible traces such as light smears or washed-out spots. Checks placed in the chemical solvents may show signs of texture change like looking worn or thin in areas.
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Inconsistent handwriting: The ink color or font for the payee or amount may differ than the signature. Other things to note are unusual alignments or weird spacing in the payee’s name.
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Tampered watermark: Chemical erasure can cause the watermark to appear whitened, glossy, or rough. Hold the check under a bright light to spot any distortions.
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Misaligned numbers: To alter the paid amount or sequence number, fraudsters sometimes use digital printers. These numbers can still occasionally be misaligned if the fraudster was in a rush to change them.
How to protect yourself from check washing fraud
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Protect your mail: Check your mail often and lock your personal mailboxes to help prevent mail theft. You can also drop off mail close to its pickup time and give checks directly to the post office.
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Shred documents: Destroy checks and bank statements to prevent fraudsters from stealing them from the trash. Make this a habit with all important and sensitive bank documents to protect your financial information.
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Use account alerts: Monitor your account activity closely and immediately report any check transactions you don’t recognize to expedite the dispute process.
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Track with USPS Informed Delivery: Consider signing up for USPS Informed Delivery to track incoming mail. If you are expecting a check and see it on your Informed Delivery notification, you’ll know to pick it up quickly.
What to do if you’re a victim of check washing
If you become a victim of check washing, contact your bank immediately, file a police report, and report the fraud to agencies such as the Federal Trade Commission (FTC), the Postal Inspection Service (USPIS), and the Internet Crime Complaint Center (IC3).
You should also place a fraud alert on your credit file and notify the intended recipient of the check. If the delayed payment could affect bills or loans, contact those organizations to explain the situation and request any available fee waivers while the issue is being resolved.
The material provided on this page is for informational use only and is not intended for financial, tax or investment advice. VisionBank and/or its affiliates assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional and tax advisor when making decisions regarding your financial situation.
