Check Washing Fraud Explained
The obvious answer to whether check washing still happens today is without any doubts YES! These days, checks are becoming less common as online payments are more widely accepted, but this doesn't mean we should neglect to consider the very real threat of banking fraud.
This type of fraud is a very simple, low-tech method used by thieves, to alter checks you have written by chemically erasing the hand-written part of the check. Quite unbelievably, the chemicals used in the process are available very commonly in stores!
After the chemical process, thieves can easily alter the check and in most case just the payee name is changed. With other words, the thief can literally deposit the check and steal your money without you noticing an unusual amount on your bank statement.
Attempted check fraud has more than doubled in the past three years reaching an estimated $12.2 billion in 2006, according to the latest American Bankers Association Deposit Account Fraud Survey Report. Of this figure, $969 million was successfully stolen in 2006.
Pretty scary, don't you agree? So, how can you minimize your risk of check washing? Well, there are no 100% secure methods but you can adapt these tips as a part of your overall shield against this type of fraud:
Defensive Tips
Do not put your outgoing bills in an unlocked mailbox. If possible, take outgoing mail directly to the post office. Also, try not to drop your mail off after the last pickup of the day.
Minimize the number of checks you write. Why not pay your bills online instead? This will reduce the possibility of your checks being stolen through the mail. Just make sure you are using a secure online connection.
To make it very difficult for the chemical process to work, use a black gel ink pen so the ink will permeate the fibers of the check and not simply site on the surface of the paper.
Never ever leave blank spaces on the payee or amount lines!
