Greg's Corner

$85 Check Washed into $4,000 Fraud

By Greg Collier

A Wake County, North Carolina, resident is sharing her story after falling victim to a growing form of financial fraud. Despite following what many would consider standard precautions, her personal check was intercepted and altered, leading to a loss of thousands of dollars.

She had written a check for a routine $85 payment and delivered it by hand at her local post office. However, the check never reached its intended recipient. Instead, it was stolen and manipulated. The original amount was changed to $4,000, and the altered check was deposited through a mobile banking app. The victim only discovered the crime after noticing the large transaction while reviewing her bank records.

This kind of fraud is known as check washing. It involves stealing legitimate checks and chemically removing the original ink so that new details can be written in. The name on the check may remain unchanged or be replaced entirely, depending on the goal of the thief. Once altered, the checks are often deposited using mobile apps that do not require in-person verification.

While the financial industry continues to adapt its security measures, criminals are also becoming more sophisticated, targeting checks that are sent through the mail or dropped off at locations presumed to be secure.

In this case, the victim did everything right. She physically delivered her payment rather than mailing it from home. Yet even that precaution was not enough to prevent her check from being stolen and altered. This highlights how pervasive and difficult to predict these schemes can be.

To reduce the risk of check washing, financial experts suggest using pens with ink that is resistant to chemical alteration. Gel pens, in particular, are harder for thieves to erase. Additionally, consider using electronic payment methods when available. If writing checks is necessary, monitor your bank account regularly for unexpected transactions and act quickly if something looks suspicious.

This incident serves as a reminder that even the most diligent efforts to prevent fraud are not always enough. Staying informed remains the best defense against financial scams like check washing.