Article Summary
Check washing, an old-fashioned crime, has made a resurgence with newfound sophistication. Criminals are exploiting vulnerabilities in mailing and banking systems to cash in on stolen funds. As check fraud incidents continue to rise, it’s essential to understand how it works and how to protect yourself.
What This Means for You
- Use black gel pens when writing checks as the ink is harder to remove.
- Bring checks directly to the post office or use USPS Informed Delivery to stay ahead.
- Monitor bank accounts and set up real-time alerts for check clearing.
- Switch to digital payments when possible and use checks with built-in security features.
- Be wary of identity theft protection services that specialize in check fraud monitoring.
- Shred old checks, bank statements and any documents with sensitive information.
- Report suspicious activity to your bank and the U.S. Postal Inspection Service immediately.
Original Post
Check washing fraud has seen a resurgence in the United States, becoming increasingly sophisticated. With the help of artificial intelligence (AI) and mail theft, organized crime rings have exploited gaps in banking security, making check washing more dangerous than ever before. Learn about the risks and how to protect yourself.
What is check washing fraud?
Check washing fraud occurs when a scammer steals a check and erases the original ink with chemicals like acetone or nail polish remover. The check is then rewritten with a new recipient and a potentially higher amount. The altered check is then deposited or cashed, and the funds are drained from the account before the victim notices.
How check washing has gotten worse
Since 2023, check fraud has exploded in the United States, with organized crime rings increasingly turning to check washing as a hybrid crime. Fraudsters use advanced technologies to forge identities and alter check images, making check washing more sophisticated. As financial institutions strengthen cybersecurity defenses, scammers target physical mail systems as a weaker link.
New tricks criminals are using
Criminals have adapted their methods, combining old techniques like mail theft with new digital strategies. Recent advancements in AI technology have made it easier for scammers to forge realistic-looking documents, generate convincing fake identities, and create sophisticated phishing emails.
How to protect yourself from check washing fraud
Protect yourself with these essential measures:
- Use a black gel pen when writing checks.
- Bring checks directly to the post office or ensure timely mail pickup.
- Monitor bank accounts and set up real-time alerts for check clearing.
- Switch to digital payments and use checks with built-in security features.
- Limit personal information on checks.
- Store checks securely.
- Check mailbox security and consider a locking mailbox.
- Be cautious with endorsements.
- Enroll in identity theft protection services with check fraud specialization.
- Invest in personal data removal services.
- Shred sensitive documents.
- Report suspicious activity immediately.
- Consider Positive Pay for businesses.
Key Terms
- Check washing
- Check fraud
- Artificial Intelligence (AI)
- USPS Informed Delivery
- Identity theft protection
- Positive Pay
- Personal data removal
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