What Is Washing a Check? How to Prevent This Fraud

Check washing is a deceptive financial fraud involving the illicit alteration of information on a check. This criminal act aims to change the intended payee, the monetary amount, or both, illegally redirecting funds from the account holder. This fraud can lead to significant financial losses for individuals and businesses, often going undetected until unauthorized transactions appear on bank statements.

The Process of Check Washing

Check washing begins with fraudsters obtaining physical checks, often through theft from unsecured mailboxes or postal collection points. Once a check is acquired, criminals employ various methods to erase the original handwritten details. They commonly use household chemicals such as acetone, bleach, or rubbing alcohol to dissolve or lift the ink without damaging the paper itself.

After the original ink has been removed, the check essentially becomes a blank canvas, except for the printed bank details and the original signature. The criminal then rewrites the payee’s name and/or the amount. The rewritten check is then deposited or cashed, directing the funds to the fraudster or an accomplice.

Identifying Altered Checks

Detecting a washed or altered check requires careful inspection, as fraudsters often attempt to make the modified document appear legitimate. One common sign is the presence of smudges, discoloration, or faded ink, particularly around the payee or amount fields. The paper itself may show signs of chemical residue, water damage, or an unusual thinning of the paper where alterations occurred. Holding the check up to a light source can sometimes reveal inconsistencies in the paper’s texture or integrity.

Another indicator of alteration involves the ink and handwriting. Different types of ink or varying handwriting styles on the same check, especially in the critical sections like the payee line or amount, should raise suspicion. Misspellings or awkward phrasing in the payee’s name can also be red flags. Discrepancies between the written and numerical amounts, or the addition of extra zeros to the amount, often signal that a check has been tampered with. Examining the security features embedded in modern checks, such as watermarks or microprinting, can also help identify a fraudulent document if these features appear missing or altered.

Safeguarding Your Checks

Individuals can take several actions to protect their checks from being washed. Use fraud-resistant pens, such as those with indelible black gel ink. These pens contain pigments that bond more strongly with the paper fibers, making the ink significantly harder to remove with common chemicals compared to standard ballpoint pen inks. Writing characters close together without large spaces can also deter fraudsters from adding extra numbers or letters.

Secure mailing practices are important in preventing check theft. Instead of leaving outgoing mail, particularly checks, in an unsecured home mailbox with the flag raised, drop them directly into a U.S. Postal Service blue collection box or hand them to a postal worker. Promptly retrieving incoming mail reduces the window of opportunity for thieves. Regularly monitoring bank accounts for suspicious activity and promptly shredding voided or unused checks are prudent steps. Keep blank checks in a secure, private location.

Responding to Suspected Check Washing

If you suspect you have been a victim of check washing or have received an altered check, immediate action is necessary to mitigate potential financial harm. Contact your bank or financial institution without delay to report the suspected fraud. This allows the bank to investigate the issue, stop payment on any affected checks, and potentially close or freeze compromised accounts to prevent further unauthorized transactions. Many banks offer provisional credit while investigating the claim.

It is also important to report the incident to law enforcement. This includes filing a report with your local police department. If the check was stolen from the mail, or if mail was otherwise involved in the fraud, contact the U.S. Postal Inspection Service (USPIS) to report mail theft or fraud. Documenting all details of the incident, including dates, times, and all communications with your bank and law enforcement, is advisable for any subsequent investigation or recovery efforts. Avoid attempting to cash or deposit any check you suspect has been washed, as this could lead to further complications and potential liability.