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  Geebo 8:00 am on July 21, 2025 Permalink | Reply
  Tags: check washing ( 19 ), mail theft ( 12 ), online banking, Scams ( 1,530 )   

  $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.

   

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  Geebo 9:00 am on November 8, 2022 Permalink | Reply
  Tags: bank fraud ( 29 ), Chime ( 3 ), customer service ( 54 ), online banking, Scams ( 1,530 )   

  Online-only banks vulnerable to familiar scam 

  

  By Greg Collier

  Online-only banks can be a boon to many. They give those who are underserved by traditional banks a place to safely keep their money. They can be a great tool for those in lower-income households, or those in rural areas who don’t live close enough to a traditional bank. Unfortunately, these banks and more importantly their customers, are still vulnerable to a scam that’s been mostly affecting traditional bank customers.

  Chime is an online-only bank that many people use. They offer lower fees than traditional banks, and customers’ money is still insured by the FDIC. Recently, a Chime customer received a phone call from someone claiming to be a Chime representative. They told her that there was possible fraudulent activity on her account. She was then given instructions on how to protect her money from being stolen from her account. In actuality, the representative was a scammer who was directing her money to a scammer’s account. The scammer ended up taking $1400 of the customer’s money, her entire paycheck.

  If this sounds a lot like the Zelle scam, you’d be correct in thinking so. While Chime does not use Zelle, it does have its own platform for sending money to friends and family. This can be exploited in the same way that Zelle has been in the past year or so.

  In this instance, Chime seems to act more like a traditional bank, as they refused to refund the victim her money. Many of the banks that use Zelle have refused refunds to victims, stating that since the victim initiated the transaction, even under false pretenses, they’re not eligible for refunds.

  Whether the bank is traditional or not, if someone calls you and tells you that you need to move your money to another account to protect it, they’re scamming you. If you receive one of these calls, hang up and call your bank at their customer service number listed on their website, or your debit card.