What is check washing? & How to avoid it

Check fraud is on the rise. In the US, check fraud nearly doubled from 2021 to 2022, according to the US Treasury’s Financial Crimes Enforcement Network. 

This fraud often takes the form of check washing — stealing and modifying a check you put in the mail. The risk can be just as great as handing someone a signed, blank check, but you can make these scams less likely with a few simple actions. 

How check washing scams work 

Fraudsters start by stealing checks from the mail, targeting personal mailboxes and/or collection boxes. Next, they “wash” the stolen checks with chemicals to remove ink, leaving only the signature.  

They can then make out the check to themselves in the amount of their choosing to cash or deposit it. Checks also list account holders’ names and addresses, which can be used in identity theft. 

How to avoid check washing scams 

Consider other payment methods 

The most foolproof step you can take to avoid check washing scams is to take advantage of other payment methods. For example: 

• Pay bills and make purchases online using your credit card or debit card. For US bills, you can also consider BillPay. 
• Send money to friends, family, and other contacts you trust using the transfer options in Digital Banking instead of mailing a check. To send globally, you might consider a wire transfer or mobile money transfer. To send within the US, Zelle^® is one popular option. 

Make checks difficult to erase 

If you need to write a check, use permanent black ink. The New York State Division of Consumer Protection recommends black gel pens, which “may have ink that thieves have greater difficulty erasing.” 

Protect your mail 

If you need to mail a check, aim to minimize the amount of time your check is left unattended: 

• Drop off checks at the post office rather than leaving them in your mailbox or a collection box. 
• Collect mail from your mailbox frequently. 
• If you will be away from home, ask the postal service to hold your mail for you. 

What should you do if your check was stolen? 

If you suspect one of your checks has been stolen, contact your financial institution right away. They may be able to prevent the check from being cashed.   

If the check was already cashed, ask your financial institution to restore the money to your account. They may ask you to sign a legal document confirming that the check was forged.