What is Check Washing and How Do You Protect Yourself?
Check fraud is on the rise, specifically check washing – a crime that involves stealing a legitimate check, chemically erasing the ink, and rewriting it for a higher amount or to a different payee. It’s fast, difficult to detect after the fact, and highly profitable for fraudsters.
Have you recently mailed a credit card or bill payment, but the company didn't receive it? You may be victim to check washing.
Criminals typically...
- Steal mail, often from mailboxes or postal collection boxes. Businesses are popular targets.
- Use solvents (like acetone or bleach mixtures) to remove the handwritten portions of the check.
- Rewrite the check with a new payee and amount, sometimes making the check payable to themselves or a money mule.
- Deposit or cash it to their own account.
Best Practices to Prevent Check Washing
Limit mailing of checks
- Use electronic payments when possible
- If mailing checks is unavoidable, drop them off inside the post office, not outdoor collection boxes
Monitor your accounts
- Review check images
- If paying a bill (e.g., utility, cable/internet, credit card), monitor to ensure the payment has gone through
- Monitor your account balance daily
- Set up account alerts for balances or transactions.
Secure your mail
- Use a locked mailbox
- Promptly retrieve your mail from the mailbox
Use checks with security features
This makes alterations more difficult. Use checks with:
- Watermarks
- Security screens
- Chemical wash detection features
- Microprint signature lines
Use fraud-proof pens
It's recommended to use a pen with blue or black non-erasable gel ink. Gel ink soaks into paper and is more difficult to remove than ink from a ballpoint pen. Some easy-to-find options include:
- Uniball 207 Gel Pen
- Pilot G-2 0.38
- Sharpie S-Gel
If you suspect a stolen or altered check, report it immediately.
- Notify your financial institution
- File a report with the U.S. Postal Inspection Service
- Document all communications
- Notify the intended payee
Timely reporting is key to fraud recovery. Early detection increases the chance your bank can reverse fraudulent activity.
Check washing is a growing threat, but simple steps can significantly reduce your risk. By modernizing payment methods (ACH/electronic payments), securing mail, and staying alert to account activity, individuals and businesses can protect themselves.
