What Is Check Washing and How to Prevent It?

What Is Check Washing?

Check washing is a type of financial fraud where criminals alter information on a legitimate check to steal funds. This involves modifying the payee’s name and the monetary amount. The goal is to redirect funds to the fraudster’s account or an accomplice, often for a higher sum than originally intended. This fraud can go undetected until a bank statement is reviewed, making vigilance important for account holders.

Methods Used in Check Washing

Criminals often obtain checks by stealing mail from residential mailboxes or postal collection boxes. Once obtained, fraudsters erase the original ink using various techniques. Common household chemicals like acetone or bleach are frequently used to dissolve or lift the ink, leaving the paper blank. Other methods involve soaking the check in water until the ink blurs and disappears.

After removing the original payee name and amount, the criminal rewrites the check with fraudulent information. They insert their own name or an accomplice’s name as the new payee and increase the amount. The original signature is usually left untouched, making the altered check appear legitimate. This allows criminals to cash or deposit the check, diverting funds.

Protecting Yourself from Check Washing

Proactive measures can reduce the risk of check washing. When writing checks, use a black gel pen because its ink is harder to wash away. Fill in all parts of the check, leaving no blank spaces where numbers or names could be added. Ensure the amount in words fills the entire line to prevent additions.

Mail security is another important prevention aspect. Avoid leaving outgoing checks in unsecured home mailboxes. Instead, drop them directly into a secure U.S. Postal Service collection box or mail them inside a post office.

Regularly monitor bank statements and online account activity to detect suspicious transactions. Many financial institutions offer alerts for account activity. Properly dispose of sensitive documents, like old checks or bank statements, by shredding them.

Responding to Check Washing

If you suspect check washing, take immediate action to mitigate damage. First, contact your financial institution to report the fraudulent activity. Your bank can stop payment on compromised checks and may recommend closing the affected account. Report unauthorized transactions within 30 to 60 days from the statement date to maximize your chances of recovering lost funds.

Beyond contacting your bank, file a police report with your local law enforcement agency. This creates an official record of the crime, useful for insurance purposes and for aiding law enforcement investigations.

If the check was stolen from the mail, reporting the incident to the U.S. Postal Inspection Service (USPIS) is also necessary, as they investigate mail-related crimes. Finally, monitor your credit report after an incident to detect any potential identity theft that might stem from the check washing fraud.