Spot the warning signs of check fraud to keep your data protected.
What Check Fraud Is
June is Elder Abuse Awareness Month, which is dedicated to preventing the physical, emotional, and financial abuse of older adults in our society. Elderly individuals make up a sizable percentage of those affected by financial fraud. One form of fraud that has been prevalent in the banking industry is check fraud. Check fraud is a common scam that happens when an unauthorized person uses someone else’s checks, or an image of their checks, to make unapproved purchases or bank withdrawals.
Common Methods of This Scam
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Check Fraud: Fraudsters take or forge checks to conduct unauthorized transactions.
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Check Washing: Scammers alter or “wash” legitimate checks. “Washing” is when criminals steal checks, use special chemicals to erase the ink, and then change the amounts and payees.
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Mail Fraud: Scammers use postal and delivery services to deceive victims for financial gain or to obtain personal information/valuables.
Spotting the Warning Signs
- Unfamiliar transactions appear on your bank statements.
- Your bank notifies you of unauthorized activity on your account.
- Your bank calls you about checks you did not write or transactions you did not make.
- An unknown person contacts you with a request to deposit a check for any reason.
- One common reason is to make money for a limited time offer.
- You get a check in the mail related to being a mystery shopper, personal assistant, or for winning a prize.
How to Avoid Check Fraud
- Monitor your financial accounts on a regular basis: Create alerts for all transactions and look over your statements frequently. Look out for any unauthorized charges or suspicious activity.
- Use Black Gel Pens to write your checks. This kind of ink is the most resistant to “Check Washing.”
- Get your mail as soon as possible after delivery. Leaving your mail in your mailbox overnight could lead to higher risk of fraud. When sending checks, try to use the letter slots at your post office.
- Be careful when sending any form of payment to someone after taking a check from them. Fraudsters often demand you send money after giving you a bad check.
How to Report Check Fraud
If you become the victim of check fraud, do not panic. Taking prompt action can help mitigate potential damage and ensure that the fraud is resolved effectively. Here are a few methods of responding to the occurrence of fraud:
- Notify your financial institution.
- Inform your bank about the crime. Go over any unauthorized charges, and consider closing your current bank account and opening a new one.
- Report to the Internet Crime Complaint Center (IC3)
- Submit a complaint online to the IC3, a division of the FBI. This is most useful for internet-related fraud.
- Report the fraud to the Federal Trade Commission (FTC)
- Visit the FTC’s IdentityTheft.gov website to report the theft and form a recovery plan.
- Or call the FTC at 1-877-438-4338.
- Answer Questions at the U.S. Postal Inspection Service (USPIS): For mail-related scams.
- Follow the USPIS’s tips at uspis.gov.
- Or call the USPIS at 1-877-876-2455.
- File a report with your local law enforcement.
- Visit or contact local law enforcement to file a report about fraud. Make sure to provide them with all relevant information and documentation.
- Obtain a copy of the report to provide to your financial institutions and credit bureaus if needed.
REMINDER: Always stay proactive and careful in protecting your financial information. If you become a victim of fraud, stay calm and act fast to solve the problem.
