The Invisible Thief: How Check Washing Steals Your Money Without You Knowing
Be alert of rising fraudulent activities and know how you can protect yourself and others from becoming a victim. The most recent fraudulent activity spike is known as check washing, which has risen across the U.S, with losses ranging from a few hundred to tens of thousands of dollars.
What is Check Washing?
Check washing is a type of fraud where criminals use chemicals to remove ink from a written check and replace it with new information, altering the payee and dollar amount. The alteration is typically made by using chemicals or solvents to erase the ink on the check, and then rewriting the check in a different amount or to a different payee. This allows the thief to cash the check and steal the money intended for someone else. Check washing can be highly damaging, as it can be difficult to detect and can result in significant financial losses for individuals and businesses.
Check washing is on the rise because criminals who stole government stimulus checks and unemployment checks during the pandemic are now looking for new sources of income. Frank McKenna, chief strategist for the San Diego-based fraud detection company Point Predictive states, “The other reason is during the COVID pandemic, the Postal Service cut back on the postal police budgets,” he adds. “As a result, mail theft and theft of checks in the mail skyrocketed” (McKenna, 2023, para. 2).
To protect yourself and others from fraudulent check washing threats, begin implementing these six concepts to your routine:
- Use gel pens: Avoid using regular pens and switch to gel pens which contain pigment-based inks. These inks are water-resistant and cannot be easily removed.
- Secure mailboxes: Ensure that your mailbox is secure and difficult to access. Use a lockable mailbox, or drop your check directly at the post office instead of leaving it in your mailbox.
- Use check security features: Purchase checks with security features, such as watermarks, security thread, and fluorescent fibers. These features make it harder for check washers to remove or alter your handwriting.
- Shred old checks: Old checks that are no longer needed should be shredded before disposal. This prevents check washers from getting hold of the checks and using them to commit fraud.
- Use online payments: Consider using online payment methods like online banking, PayPal, and wire transfers. These methods eliminate the need to write checks and reduce the risk of check washing.
Source:
Harrar, S. (2023, March 2). 6 Ways You Can Thwart Check Washers. https://www.aarp.org/money/scams-fraud/info-2023/stop-check-washers.html
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