What Is Check Washing Fraud?

Check washing fraud is far from new, but a recent resurgence in the crime might have you rethinking when and how you send checks. Yes, this is even happening locally, right here in Southwestern Wisconsin.  At WCCU, we urge you to be aware and spread the word. 

What Is Check Washing Fraud? 

Check washing is one step in a chain of events that criminals use to steal money. The entire check fraud scheme generally works like this:

• Criminals steal checks from the mail.
• They wash the stolen checks. Thieves prepare and wash checks with specific chemicals to remove the payee information and amount, but keep the rest of the check’s information and the signature.
• They write new information on the blank check. Once the check is washed and dried, criminals can write in any name and amount they want. They might turn a $50 check into a $5,000 check and can make it out to whomever they want.
• They deposit the check and then withdraw the funds.  Or they write the check out for other purposes.  Either way, they are stealing your money.

How to Avoid Check Washing Fraud

• Use electronic bill pay and transfers.
• Use a black gel pen. If you are writing a check, gel pens might have ink that’s harder for criminals to wash off. Some gel pens, such as Uni-Ball pens with Super Ink, even claim that their ink protects against fraud.
• Mail checks at the post office.  If you’re mailing a check from your home, don’t raise the flag on your mailbox—thieves may be on the lookout for these.
• Retrieve mail from your mailbox daily. You never know when a thief will try to steal your mail, so it’s best to frequently check your mailbox.
• Ask for a USPS mail hold when traveling. If you’re going to be out of town, you can request a USPS mail hold, and the USPS will hold your mail for up to 30 days.
• Frequently review your checking account. Keep a close eye on your checking account and look for unusual or unexpected withdrawals.

If you have family and friends that regularly send checks in the mail, please take a moment to share this important information with them.