Greg's Corner

Is it even safe to mail checks anymore?

By Greg Collier

When we discuss the check washing scam, or the newer check cooking scam, we recommend mailing your checks from inside your local post office. But what happens when your checks are being stolen from within the postal system? That’s what one county in Maryland discovered happening in their community.

If you’re not familiar with check washing, it’s a fraudulent scheme where criminals tamper with a check by altering or erasing information to gain unauthorized access to funds. The term ‘check washing’ specifically refers to the process of removing or modifying the ink on a written check, typically using chemicals or solvents. This allows the perpetrator to change details such as the payee’s name, the amount, or other information on the check.

Once the check is altered, it can be used by the fraudster to withdraw money from the victim’s account or make unauthorized purchases. Criminals involved in check washing often focus on outgoing mail or checks left in vulnerable locations, such as home mailboxes, where they can easily intercept and manipulate the checks.

In Prince George’s County, Maryland, investigators discovered a multi-million dollar check washing ring. One of the alleged ring members was a USPS mail handler assistant. This position allowed them to steal checks while on the job.

From there, the checks would be sent to the ring leader, who allegedly would alter the checks. Then the checks were made out to money mules, who would deposit the checks into their own bank accounts until they cleared. Money was withdrawn or transferred from these accounts into other accounts used by the scammers.

Each member of the ring is facing a potential sentence of 30 years in federal prison.

While this is most definitely an edge case scenario, the chance of your check being stolen in the manner is not zero. So, what can you do to prevent your check from being stolen? If you’re insistent on writing checks, we recommend using an indelible ink like a gel pen or Sharpie. These inks are said to be difficult to wash off the checks. However, checks written with these inks are still vulnerable to the new check cooking scam, which alters checks digitally.

For situations like recurring monthly bills, we recommend setting up automatic payments with your providers. Typically, recurring bills such as utilities, rent/mortgage, and insurance premiums are good candidates for automation.

While paper checks have been a traditional method of payment, the risks associated with scams like check washing highlight the vulnerabilities in this outdated system. With the advent of secure and convenient digital payment options, it’s time to seriously consider abandoning paper checks. Embracing electronic transactions enhances security and streamlines financial processes, making it a practical choice for the modern era.