Check Fraud

How It Works

Check fraud occurs when an unauthorized person uses someone else’s checks, or images of a check, to make unauthorized purchases or withdrawals.

Common Methods of Check Fraud

• Check fraud: Scammers steal, or forge checks to make unauthorized transactions.
• Check washing: Fraudsters alter or “wash” legitimate checks with chemicals to erase the ink from a check to rewrite amounts and payees.
• Mail fraud: Defrauding others by sending or receiving fraudulent checks through the mail.

Warning Signs

• Unfamiliar checking account transactions appear on your bank statements.
• Your bank notifies you of unauthorized account activity.
• You receive calls from your bank about checks you didn’t write or transactions you didn’t make.
• Someone unsolicited contacts you with a request to deposit a check for any reason, especially to make money on a limited time offer of any kind.
• You receive a check in the mail related to employment as a mystery shopper, personal assistant, or for being the winner of a prize.

Ways to Avoid It

• Monitor your financial accounts regularly: Set up account alerts for all transactions and review your statements frequently for unauthorized charges or unusual and suspicious activity.
• Use black gel ink on checks: Black gel ink is highly resistant to check washing, a common scheme where chemicals are used to erase ink from a check to rewrite amounts and payees.
• Get mail promptly after delivery and avoid leaving mail in your mailbox overnight. When sending checks, consider using the letter slots in your post office to send mail.
• Be wary of sending money or any medium of payment to someone after taking a check from them for any reason. Scammers often claim overpayment or demand you send or wire money after they give you a bad check.

Ways to Report It

Taking prompt and comprehensive action when faced with check fraud can help mitigate any potential damage and ensure that the fraudulent charges are resolved effectively.

• Notify your financial institution
  • Bank: Inform your bank about the fraudulent transaction.
  • Dispute any unauthorized charges and consider requesting your account be closed and a new account opened.
• Report to the Internet Crime Complaint Center (IC3)
  • Online: Submit a complaint to the IC3, a division of the FBI.
  • This is especially useful for internet-related crimes.
• Report the fraud to the Federal Trade Commission (FTC)
  • Online: Visit the FTC’s IdentityTheft.gov to report the theft and create a recovery plan.
  • Phone: Call the FTC at 1-877-438-4338.
• U.S. Postal Inspection Service (USPIS): For mail-related scams.
  • Online: uspis.gov
  • Phone: 1-877-876-2455
• File a report with law enforcement
  • Local law enforcement: Visit or contact your local law enforcement agency to file a report about the fraud. Provide them with all relevant information and documentation.
  • Obtain a copy of the law enforcement report to provide to your financial institutions and credit bureaus as needed.

Remember: Always remain vigilant and proactive in protecting your financial information.