5 Common Types of Check Fraud You Should Know
Even in today’s digital world, checks still contain valuable information that criminals can use to steal money or commit fraud. Scammers are also combining traditional check scams with mobile deposits, electronic payments, and peer-to-peer payment apps.
At Mutual Savings Credit Union, we want to help you recognize the warning signs and protect your money.
1. Mail Theft
Criminals may target mailboxes, apartment mailrooms, or collection boxes looking for outgoing checks. Stolen checks can be altered, copied, or used to access financial information.
Protect yourself by:
- Mailing checks from a secure location, such as inside a post office.
- Avoiding unsecured mailboxes overnight.
- Monitoring your account for expected payments.
2. Check Washing
Check washing occurs when a thief removes the original ink from a check and rewrites it with a different payee or dollar amount. A $50 check could potentially become a $500 fraudulent payment.
Using a permanent gel pen and avoiding unnecessary blank spaces on checks may help reduce the risk of alterations.
3. Counterfeit Checks
Counterfeit checks are fake checks made to look legitimate. Scammers may use real financial institution names, logos, routing numbers, and account information.
Remember: A check that looks official isn’t necessarily legitimate. Be cautious with unexpected checks, especially from someone you don’t know.
4. Fake Check Scams
Fake check scams often involve a job offer, prize, online sale, or another unexpected payment. The scammer sends a check and asks you to deposit it, then send some of the money back.
Today, these scams may also involve electronic check images and mobile deposits. Even if funds appear available, the check can later be returned, leaving you responsible for money you’ve already sent.
Never send money back based solely on a deposited check.
5. Forged Checks
Forged checks occur when someone signs or changes a check without permission. This can include signing someone else’s name, changing payment information, or altering endorsement details.
Regularly reviewing your account can help you spot suspicious activity quickly.
How to Protect Yourself
A few simple habits can help reduce your risk of check fraud:
- Monitor your accounts regularly.
- Set up banking alerts.
- Be cautious with unexpected checks or payments.
- Never send money back to someone based only on a deposited check.
- Use secure mail drop locations.
- Report suspicious activity as soon as possible.
Stay Alert, Protect Your Money
Check fraud continues to evolve, but awareness can help you recognize scams before they become costly.
Your money matters. We’re here to help you protect it.
