Can Someone Steal a Check? What to Do If It Happens

Checks remain a common payment method, but they are susceptible to theft and fraud. While digital transactions are prominent, physical checks still circulate and present security vulnerabilities. Understanding how checks can be compromised and what actions to take helps protect individuals and their financial accounts. This guide provides information on identifying and responding to check-related fraud.

Common Methods of Check Theft

Check theft often begins with acquiring a check or its sensitive information. Mail theft is a prevalent method, where criminals intercept checks sent or received via postal services. This includes “mail fishing” from public mailboxes or stealing from home mailboxes. Outgoing checks left in unsecured mailboxes are particularly vulnerable.

Physical theft also accounts for many check compromises. This includes checks stolen during burglaries from homes or vehicles, or from personal belongings through pickpocketing. Internal theft by employees with unauthorized access to company checks can also lead to misuse.

Digital interception, often through phishing schemes, can also result in check information theft. Scammers trick individuals into revealing sensitive financial details, used to create fraudulent digital checks or facilitate remote deposit capture fraud. This method focuses on acquiring data to exploit checking accounts rather than obtaining a physical check.

Types of Check Fraud

Once a check or its information is stolen, various fraudulent activities can occur. Forgery involves a criminal signing a stolen check with the account holder’s unauthorized signature, making it appear legitimate. This allows the fraudster to cash or deposit the check.

Check alteration occurs when a legitimate check is modified after issuance. Fraudsters might change the payee’s name, increase the amount, or both, often using chemicals to “wash” away original ink. This allows them to rewrite key details and cash or deposit the altered check.

Counterfeit checks are fake checks created using stolen account information. Criminals print checks that look authentic but are drawn on unauthorized or non-existent accounts. These often include a legitimate bank’s routing number and an account number that may or may not belong to a real person.

Check kiting exploits the “float” time, the period between when a check is deposited and when funds fully clear. This scheme involves drawing funds from one account before the deposit check from another, often fraudulent or with insufficient funds, has cleared. Remote Deposit Capture (RDC) fraud leverages images of stolen checks for fraudulent mobile deposits, allowing criminals to deposit checks without physical presence.

Recognizing Fraudulent Checks

Identifying a fraudulent or altered check involves careful scrutiny of visual and contextual cues. Poor printing quality is a common red flag, including misspellings, unusual fonts, or blurry text. Legitimate checks typically have crisp, clear printing.

Security features embedded in authentic checks provide further indicators. Look for watermarks when held up to light, microprinting along borders or signature lines (readable under magnification), and color-shifting ink. Missing or poorly replicated security features can indicate a counterfeit. The magnetic ink character recognition (MICR) line at the bottom should be crisp and not easily smudged.

Sender or payer red flags also warrant attention. Be wary of checks from unknown senders, especially if tied to unexpected offers like lottery winnings or overpayment scams. A common scam involves receiving a check for more than an agreed-upon amount and being asked to refund the difference; this “overpayment” check is typically fraudulent. Pressure to act quickly or unusual requests, such as wiring money back, should raise suspicion.

Actions to Take If a Check is Stolen or Used Fraudulently

Contact Your Bank

Contact your bank immediately upon noticing suspicious activity. Inform them about the stolen check or unauthorized transactions, request a stop payment if the check has not yet cleared, and inquire about their fraud resolution process. Many banks require prompt notification, sometimes within 30 days, to initiate reimbursement for unauthorized transactions.

Notify Payer or Payee

Notify the payer or payee of the stolen or fraudulent check, if applicable. This allows the other party to be aware and take protective measures. For example, if your outgoing payment check was stolen, inform the payee to expect a replacement and disregard fraudulent attempts to cash the original.

File a Police Report

File a police report to create a documented record of the crime. This record can be necessary for bank investigations and potential credit card disputes. Provide law enforcement with all available details, including dates, amounts, and any known information about the suspected perpetrator. Obtain a copy of this report for your records and for providing to financial institutions or credit bureaus.

Report to Relevant Authorities

Report to relevant authorities, especially if mail was involved. Contact the U.S. Postal Inspection Service (USPIS) at 1-877-876-2455 or through their website if the check was stolen from the mail. If identity theft is suspected due to check theft, report it to the Federal Trade Commission (FTC) at IdentityTheft.gov or by calling 1-877-438-4338. If a tax refund check was involved, contact the Internal Revenue Service (IRS).

Monitor Accounts and Credit

Monitor accounts and credit reports continuously after a fraud incident. Regularly review bank and credit card statements, and credit reports for further suspicious activity. Consider placing fraud alerts with the major credit bureaus (Equifax, Experian, TransUnion) to make it more difficult for identity thieves to open new accounts.

Maintain Detailed Records

Maintain detailed records of all communications throughout the process. Document dates, times, names of individuals contacted, and conversation summaries. Keep copies of all relevant documents, such as bank statements, police reports, and correspondence with authorities. This record-keeping supports fraud claims and aids recovery efforts.

Protecting Your Checks

Secure Mailing Practices

Use secure mailing practices, such as secure mailboxes or dropping outgoing mail directly at a post office. Avoid leaving outgoing mail, especially checks, in unsecured residential mailboxes for extended periods to prevent interception. Promptly retrieve incoming mail after delivery to prevent theft.

Secure Storage

Store blank and completed checks in a secure location at home or in an office. This prevents easy access by unauthorized individuals. Maintaining an inventory of your check supply can also help detect missing checks.

Careful Check Writing Habits

Careful check writing habits enhance security. Use indelible ink, such as a black gel pen, resistant to chemical washing. Fill in all lines completely, leaving no large spaces where amounts or payees could be altered. Writing out the full amount in words and numbers, ensuring no gaps, deters alteration.

Reconcile Bank Statements

Regularly reconcile bank statements against your records to quickly detect discrepancies. This allows for prompt identification of unauthorized transactions. Many financial institutions offer online banking tools to monitor activity and provide alerts for unusual transactions.

Utilize Digital Alternatives

Utilize digital alternatives for payments, such as direct deposit, online bill pay, or electronic funds transfers, to reduce reliance on physical checks. These methods often offer enhanced security features like encryption and multi-factor authentication. Finally, shred old checks, bank statements, and other documents containing financial information before disposal to prevent criminals from retrieving sensitive data.