Ten Tips to Curb Mail-Related Check Fraud

Check fraud, often seen as a declining threat, has re-emerged as a significant risk. According to a Financial Crimes Enforcement Network Financial Trend Analysis, over 15,000 Bank Secrecy Act reports related to mail theft and check fraud were filed by 841 financial institutions in just one six-month period, amounting to more than $688 million in suspected fraudulent activity.

To orchestrate their crimes, fraudsters typically target United States Postal Service blue collection boxes; unsecured residential mailboxes; and privately owned cluster mailboxes at apartment complexes, planned communities and commercial businesses. They then use mail theft techniques including forced entry, fishing devices and stolen USPS master keys.

After criminals get their hands on stolen checks, they alter or “wash” the checks, which is known as check washing. Through this process, fraudsters often forge new dollar amounts, reproduce and sell checks on the dark web, or create counterfeit checks using routing and account information from the original.

To cash in on their crimes, these brazen criminals cash or deposit checks at financial institutions, ATMs or by remote deposit.

Despite the increase in mail-related check fraud, there are steps you can take to help lower the risk:

1. Use a black ink gel pen when filling out checks. Gel pens penetrate the check paper, making them harder to wash.
2. Don’t leave blank spaces in the payee or amount lines.
3. Don’t include personal details, such as Social Security numbers, driver’s license numbers, or phone numbers on checks.
4. Use online bill pay and other electronic or mobile payments whenever possible.
5. Never leave a check in an unlocked mailbox (for example, a mailbox next to the front door or at the end of the driveway).
6. If using a USPS collection box to mail outgoing checks, make sure the pickup time is within the next few hours. Collection times are posted on the box.
7. Keep in mind that the most secure way to mail a check is to take it directly to the post office.
8. Frequently check bank statements for irregularities.
9. Protect vulnerable members of your family and community. Remind them that fraudsters often use technology tools including call spoofing and AI-assisted voice recreation to lure people into their schemes.
10. If you or an accountholder becomes a victim of check fraud, report it to your local police department and the United States Postal Inspection Service.

(Partially reprinted from www.shazam.net)