What Does It Mean to Wash a Check?
Uncover the details of check washing fraud, from how altered checks steal your funds to essential prevention and recovery strategies. Protect your money.
Check washing is a type of financial fraud that involves altering information on a legitimately written check to redirect funds to an unauthorized recipient. This deceptive practice poses a significant threat, potentially leading to substantial financial losses for victims.
Understanding Check Washing
Check washing occurs when criminals chemically or physically modify a check after it has been written and mailed. They specifically target the payee’s name or the monetary amount. The objective is to divert funds from the check writer’s account into an account controlled by the fraudster or an accomplice. The term “washing” refers to erasing the original ink without damaging the paper, preparing it for new, fraudulent information.
This practice is part of a broader check fraud scheme that has increased in recent years. The U.S. Postal Inspection Service recovers over $1 billion in counterfeit checks and money orders annually.
Methods Used in Check Washing
Criminals employ common household chemicals to erase ink from checks without damaging the paper’s integrity. Substances like nail polish remover (acetone), bleach, or paint thinner are used for this purpose. The process involves carefully applying these solvents to remove the original payee and amount, while preserving the check writer’s signature. Some fraudsters may even place a low-adhesive tape over the signature to protect it during the washing process.
After the ink is dissolved and the check dries, it becomes a signed, blank document. The fraudster then rewrites the check, often to themselves or a recruited accomplice, and may significantly increase the original amount. For example, a $50 check could be altered to $5,000. These altered checks are then deposited at banks or ATMs, or through mobile deposit, allowing the criminals to quickly withdraw the funds. Checks are typically obtained through mail theft, which can involve stealing from personal mailboxes, business mailboxes, or even U.S. Postal Service collection boxes. Dumpster diving for discarded mail and inside jobs also serve as methods for criminals to acquire checks.
Protecting Your Checks
Adopting secure practices for handling and sending checks can significantly reduce the risk of becoming a victim of check washing. Using pens with indelible, pigment-based ink, such as black gel pens, is highly recommended as this type of ink is resistant to many solvents used by fraudsters. It is also advisable to fill in all lines on the check, leaving no blank spaces where information could be added or altered.
When mailing checks, prioritize secure methods to prevent theft. Avoid leaving outgoing mail in residential mailboxes with the flag raised, as this signals the presence of mail to potential thieves. Instead, deposit checks directly inside a post office or in a secure, blue U.S. Postal Service collection box immediately before the last pickup time, rather than leaving them overnight.
Regularly monitoring your bank statements and reviewing images of cleared checks online can help detect any suspicious activity or alterations quickly. Consider using alternative payment methods such as online bill pay, Automated Clearing House (ACH) transfers, or direct deposit whenever possible, as these digital options often provide enhanced security features and faster processing.
Actions If You Suspect Check Washing
If you discover or suspect that one of your checks has been washed, immediate action is necessary to mitigate potential losses. Contact your bank without delay to report the fraudulent activity and inquire about stopping payment on the altered check. Banks are generally required to investigate reported fraud and may provide provisional credit while the investigation is underway.
It is also important to file a police report with your local law enforcement agency, providing them with all available details and documentation of the fraud. If mail theft was involved, report the incident to the U.S. Postal Inspection Service, which can be done online or by phone. Additionally, closely monitor your credit reports with the three major credit bureaus (Equifax, Experian, and TransUnion) for any signs of identity theft, such as new accounts opened in your name. Placing a fraud alert or security freeze on your credit file can help prevent further unauthorized activity.