Check Washing
Protect Your Money: Understanding and Preventing Mail Fraud

The Rise of Check Washing: A Growing Threat

Check washing, a form of mail fraud, is surging across the U.S., leaving victims with financial losses ranging from hundreds to thousands of dollars. Criminals are targeting checks, altering them, and cashing them for substantial sums.

Mark McPherson's experience is a stark example. After mailing a check, he discovered it was stolen, 'washed,' and rewritten for a much larger amount. This low-tech crime is easily accessible, making it a significant threat to consumers. Frank McKenna of Point Predictive notes that anyone can do it.

How Check Washing Works: The Process

Crooks steal checks from mailboxes or collection boxes using stolen keys or by 'fishing' them out. They then erase the payee name and amount with chemicals like bleach or acetone.

After rewriting the check for a higher amount, they deposit or cash it at banks, check-cashing businesses, or stores. The checks often appear perfect, making detection difficult.

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It is low-tech, but that is actually the appeal. Almost anyone can do it.

Frank McKenna, Chief Strategist, Point Predictive

Why Is Check Washing on the Rise?

The surge in check washing can be attributed to two primary factors. First, criminals who previously targeted government stimulus and unemployment checks are now seeking new income sources. Second, budget cuts at the U.S. Postal Service during the COVID-19 pandemic led to increased mail theft.

Jim Kyser's experience illustrates the speed and efficiency of these crimes, with a check altered and cashed within 24 hours.

The Broader Implications: Beyond the Stolen Funds

Washed checks can lead to identity theft and further financial crimes. Criminals sell washed checks to other criminals and may provide account holders’ Social Security numbers and account balances.

This information is then used to take out loans, open bank accounts, and establish lines of credit in victims' names, transforming a simple crime into a complex financial attack.

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It used to be a very simple crime. Now it’s this beast.

David Maimon, Director, Evidence-Based Cybersecurity Research Group, Georgia State University

6 Ways to Protect Yourself from Check Washing

1. Pay Bills Online: This is a safer alternative, as payment systems are encrypted.

2. Deliver Mail to the Post Office: Avoid leaving checks in your mailbox or outdoor collection boxes after the last pickup.

3. Use Non-Erasable Gel Ink: Gel ink is harder to remove than ballpoint ink.

4. Retrieve Mail Daily: Collect mail as soon as possible after delivery.

5. Monitor Your Bank Account: Regularly review your account balances and check transactions.

6. Report Incidents Quickly: Contact your bank immediately and report suspicious activity to the U.S. Postal Inspection Service and credit reporting agencies.