Greg's Corner

The resurgence of check fraud

By Greg Collier

Writing physical checks might seem like an outdated practice. However, despite the decline in check usage, check fraud is not only persisting, it’s on the rise. Many victims of this crime may not even realize they’ve been targeted until it’s too late.

Imagine receiving a notification from your bank that a check you wrote for a small amount was cashed for a staggering sum. Or worse, that multiple checks you never wrote are now linked to your account. Unfortunately, scenarios like this are becoming more common.

Criminals have found new ways to profit from stolen checks, with social media platforms like Telegram becoming a marketplace for these illicit transactions. In one recent case, dozens of stolen checks from a specific area were found for sale online. The checks, all pilfered from the same vicinity, were bundled with personal information that was brazenly displayed for potential buyers.

Once checks are stolen, they are often undergo a process called check washing. This process involves removing the original ink, allowing fraudsters to alter the payee’s name and the amount. These doctored checks are then sold to the highest bidder, often along with other stolen information such as driver’s licenses, and debit cards. The sheer volume of stolen checks has allowed criminals to operate openly, with little need to conceal their activities.

To protect against check fraud, limiting the use of checks is advisable. If writing a check is unavoidable, it’s wise to avoid dropping it in public mailboxes, where criminals often strike. Instead, taking the check directly to the post office provides a safer alternative. Tracking the check’s progress can also offer peace of mind, ensuring that it reaches its destination without issue. Staying alert and monitoring bank accounts closely can help catch any unusual activity early, allowing for a quicker response if something goes wrong.

Check fraud may seem like a relic of the past, but its resurgence reminds us that even in a digital world, old threats can still cause significant harm. By taking a few extra precautions, you can help protect yourself from becoming the next victim.