“How to Protect Yourself from Check Washing Fraud”

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Understanding Check Washing Fraud

Check washing fraud is an old crime that has seen a resurgence recently. The basic concept involves someone stealing a filled-out check, erasing everything but the signature, and then making the check out to themselves. This can result in thousands of dollars being drained from your account, and it might take months to recover the funds. However, there are steps you can take to protect yourself.

What Is Check Washing Fraud?

Check washing is part of a larger scheme to steal money. Here’s how it typically works:

• Stealing Checks: Criminals steal checks from mailboxes or USPS collection boxes. These thieves can be individuals or part of organized crime groups.
• Washing Checks: Thieves use chemicals to remove the payee information and amount from the check, keeping the rest of the check’s information and the signature intact.
• Rewriting Checks: Once the check is washed, criminals can write in any name and amount they want, turning a small check into a large one.
• Depositing Checks: The criminals then deposit the check at a bank, ATM, or check cashing store, often using fake identities or recruiting others to deposit the check for them.
• Withdrawing Funds: Once the check clears, the criminals quickly withdraw the money to hide its origins.

Sometimes, different criminals handle different parts of the process, such as stealing and washing checks or buying and depositing washed checks.

How to Avoid Check Washing Fraud

Here are several ways to protect yourself from check washing fraud:

• Use Electronic Payments: Opt for electronic bill pay and transfers instead of checks. Many banks offer free online bill pay services, and peer-to-peer payment apps are also a good option.
• Use a Black Gel Pen: Gel pens, especially those with fraud-resistant ink, make it harder for criminals to wash off the ink.
• Drop Checks at the Post Office: Minimize the risk of theft by mailing checks directly from the post office rather than leaving them in a USPS box or your home mailbox.
• Retrieve Mail Daily: Check your mailbox frequently to reduce the chance of theft. You can also sign up for USPS Informed Delivery to get daily email notifications of your incoming mail.
• Request a Mail Hold: If you’re traveling, request a USPS mail hold to keep your mail safe until you return.
• Monitor Your Account: Regularly review your checking account for any unusual or unexpected withdrawals.

Inform family and friends who frequently send checks about these precautions to help them avoid check washing fraud as well.

What to Do if Your Money Is Stolen

If you suspect that one of your checks or your checkbook has been stolen, contact your bank immediately. They may be able to put a hold on the check to prevent its use. If a forged check has already been deposited, report the fraud to your bank and file a police report. Banks are generally required to reimburse customers for forged checks, but disputes can sometimes take months to resolve.

To escalate the issue, you can contact the bank’s regulator. Use the search tool at HelpWithMyBank.gov to find the appropriate regulator for your bank or credit union.

Monitor Your Credit for Identity Theft

Check thieves may also use your mail to steal your identity. Regularly check your credit report or use a credit monitoring service with free alerts to quickly detect any unauthorized activity. Identity theft protection services can also help with financial and logistical support for identity restoration.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We are here to assist you with the best mortgage solutions tailored to your needs.

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