What to Do When a Check Is Stolen: Your Action Plan

A stolen check can lead to significant financial distress, but swift action can mitigate potential harm. Understanding the immediate steps to take and maintaining vigilance afterward are crucial for minimizing losses and protecting your financial identity.

Immediate Steps to Take

Upon discovering a stolen check, gathering all known details is the first step. Collect information such as the check number, the approximate amount if it was a sent check, the date it was last seen, and where it was stolen from. This comprehensive information will be essential for subsequent actions with financial institutions and law enforcement.

Contacting your bank or credit union immediately is an immediate next action. If the stolen check was one you issued, request a “stop payment” to prevent it from being cashed. Be aware that most banks charge a fee for this service, and a stop payment order typically remains in effect for about six months. If your entire checkbook or multiple blank checks were stolen, inquire about closing the affected account to prevent further fraudulent activity.

Filing a police report for a stolen check is important, especially if you suspect criminal activity. This report creates an official record of the incident, which can be beneficial for potential insurance claims or as evidence if identity theft occurs. Provide all gathered details about the stolen check to the police department.

Placing a fraud alert with one of the three major credit bureaus—Equifax, Experian, or TransUnion—is another important step. You only need to contact one bureau; that bureau is required to notify the other two. An initial fraud alert lasts for one year and requires businesses to verify your identity before extending credit.

Reporting the theft to the Federal Trade Commission (FTC) via IdentityTheft.gov is also recommended. This government website provides a personalized recovery plan and generates an official FTC Identity Theft Report. The report is valuable for disputing fraudulent transactions and can be shared with law enforcement and financial institutions.

Ongoing Monitoring and Follow-Up

Meticulously review all bank and credit card statements for any unauthorized transactions or suspicious activity. Many banks offer alerts for various account activities, which can provide an early warning system for unusual debits or logins.

Obtain your free credit reports from AnnualCreditReport.com, the only authorized website for this purpose. You are entitled to one free report every 12 months from each of the three major credit bureaus. Review these reports carefully for new accounts opened in your name, inquiries you didn’t authorize, or other unfamiliar information.

Monitor your mail for suspicious documents, such as new credit card offers you didn’t apply for or bills for services you don’t recognize. Regularly check other financial accounts, like investment accounts, for unusual activity.

Consider placing a credit freeze on your credit reports. Unlike a fraud alert, a credit freeze restricts access to your credit report, making it impossible for new credit accounts to be opened in your name without your explicit permission. This offers stronger protection, though you will need to temporarily lift the freeze when applying for new credit yourself.

Preventing Future Incidents

Use secure, locked mailboxes for outgoing mail rather than leaving checks in an unsecured residential mailbox. Promptly retrieve incoming mail to prevent criminals from intercepting sensitive documents like bank statements or bills.

Shred any documents containing personal or financial information before discarding them. This includes old bank statements, canceled checks, and any other papers with account numbers or sensitive data. Proper shredding prevents criminals from gathering information that could be used for check fraud or identity theft.

Utilizing online bill pay and direct deposit services can decrease your reliance on physical checks, thereby reducing the risk of them being stolen. Digital payment methods often incorporate advanced security features like encryption and two-factor authentication, which make transactions more secure. Direct deposit ensures that your income is deposited directly into your account, bypassing the mail system entirely.

Consistently checking bank accounts, credit card statements, and credit reports allows for early detection of any suspicious activity. Keeping blank checks in a secure, private location, such as a locked drawer or safe, also adds a layer of protection against theft.