‘Check washing’ costs Americans over $1 billion each year, says USPIS — how to spot it and protect your money
In the same ABC7 NY report, Matt Schick became a victim after depositing a contractor's payment in a street mailbox. Within days, someone had intercepted and cashed it for $7,500.
Fortune magazine reported on entrepreneur Steve, who was stunned to discover that his $310,000 IRS payment never arrived. Thieves had chemically "washed" the check, replacing "IRS" with another name before depositing it. He was forced to pay his taxes again, including penalties and interest, while still fighting with his bank to recover the stolen funds.
These real-life examples demonstrate the devastating impact of check washing and the challenges victims face in recovering their money. While some people get their funds back quickly, many others endure months of waiting and uncertainty.
How can you protect yourself from becoming the next victim of this increasingly common scam?
Read more: Rich, young Americans are ditching stocks — here are the alternative assets they're banking on instead
How to protect yourself from check washing
Although digital payments are popular, checks remain necessary in certain situations. If you still use checks, consider these protective measures to prevent check washing:
Avoid outdoor mailboxes: When sending important documents, such as checks, it's advisable to use a post office for mailing rather than a standard mailbox.
Check your mail regularly: To avoid mail accumulation and safeguard your deliveries during absences, consider utilizing the USPS hold-mail service when you'll be away from home for extended periods.
Write smarter: When completing important documents, it's recommended to utilize gel or rollerball pens with permanent blue or black ink, as this makes alteration more difficult. Ensure you complete each field thoroughly, leaving no blank spaces.
Cover it up: To protect your financial information from potential mail theft, use security envelopes when sending checks. These specially designed envelopes feature patterns that prevent contents from being visible through the paper.
Go digital: Utilize digital payment options like bank bill-pay systems or mobile apps instead of sending paper checks through mail.
Keep an eye on accounts: Check your accounts regularly and set up transaction alerts to catch fraud early.
Act fast: Contact your bank, local police and the USPIS immediately if you’re a victim.
Check washing might seem like an outdated scam, but this fraud scheme continues to drain billions of dollars from unsuspecting victims, even in our digital era. This sophisticated con can catch even the most careful consumers by surprise. By remaining alert and opting for more secure payment alternatives when available, you can protect yourself from significant financial losses and avoid becoming another statistic.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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