Protect Your Payments: What to Know about Check Washing and Mail Theft

The United States Postal Inspection Service recovers more than $1 Billion in fraudulent checks and money orders each year. If you mailed a check that was paid but never received by the intended recipient, criminals may have stolen it.

The best way to protect yourself and your accounts here at Northwoods Community Credit Union is be informed about what constitutes check fraud and some best practices for keeping your mail and accounts safe.

What is Check Fraud?

Check fraud occurs when criminals misuse checks or check information to access funds that do not belong to them. Unfortunately, these schemes have become more sophisticated and more common.

Here are some of the most frequent types:

Mail Theft
Checks are stolen before reaching their intended destination. If you are mailing checks for credit card payments, phone bills, or rental payments that you have made many times in the past, you could still be at risk.

Check Washing
Criminals use chemical solutions to remove the original ink on a legitimate check. They then rewrite the check with altered payee and dollar amounts before cashing or depositing it.

Counterfeit Checks
Fraudsters create fake checks using stolen accounts and routing numbers.

Overpayment Scams
Fraudulent checks are sent to individuals who are then pressured into sending money back before the check is discovered to be fake.

How Can You Protect Yourself?

Protect Your Mail

• Use the letter slots inside your Post Office to send mail.

• Use security envelopes to conceal the contents of your mail. If you’re sending large payments, consider requesting signature confirmation and tracking at your local post office.

• Sign up for informed Delivery at USPS.com. It sends you daily email notifications of incoming mail and packages.

• Get your mail promptly after delivery. Do not leave mail overnight in your mailbox.

• If you’re heading out of town, ask the post office to hold your mail until you return.

• Contact the intended recipient or sender if expected mail is not received or processed in a timely manner.

• If you move, promptly file a change of address with USPS and notify your financial institutions.

Protect Your Accounts and Checks

• Use automatic payments, E-check, online bill pay or other electronic payments instead of mailing checks whenever possible.

• Don’t leave blank spaces in the payee or amount lines.

• When writing checks, use pens with indelible ink (such as permanent or gel) so it is more difficult for a criminal to wash your checks.

• Don’t write personal information, such as Social Security Number, credit card information, driver’s license number or phone number on checks.

• Use Mobile or Online Banking to review your bank activity and statements for errors and access copies of your checks to ensure that are not altered.

• If your bank provides an image of a paid check, review both front and back to ensure that the indorsement information is correct and matches the intended payee.

• Follow up with payees to make sure they received your check.

• Contact us immediately if you notice a transaction that doesn’t look right. Early reporting makes a significant difference in resolving fraud quickly.

Fraud prevention is a shared responsibility. By understanding how these schemes work and taking a few preventative measures, we can work together to keep your accounts secure.

If you have questions, concerns or believe you may have been affected, please contact us right away.