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While money transfer apps and web bill pay have reduced the practice, writing checks is still used to send and receive payments.  And that means check fraud is still a prevalent danger.

One such form of fraud is “check washing.” It involves stealing a check and depositing it with doctored information. Victims of check washing run the risk of having their money and financial information stolen.

As a continuation of cybersecurity awareness month, we’ll talk about check washing, including what it is and what you can do to protect yourself.

How does someone commit check washing?

At the core of check washing is the mail. Let’s say you’re sending off a check to pay a bill from your electric company. Before leaving for work in the morning, you write out a check like normal and place the payment envelope in your mailbox for the carrier to pick up. Then you leave for work.

While you’re away, the culprit peeks into your mailbox and takes the envelope that contains the check. Then, using chemicals (like bleach or nail polish remover), the culprit “washes” away the information from the check. Thieves typically erase the original payee name and amount, which leaves the signature intact.

Then, the fraudster waits for the check to dry and replaces the erased information with whatever they want. They might change the payee to a dummy account or even change the dollar amount to something higher than you originally wrote.

After replacing the information, the thief takes the check to a financial institution or check-cash business to deposit or cash out. It won’t be long before your statement says you’ve sent a check to a complete stranger and you’re down a significant amount of money.

Check washing is so insidious because of how “real” a defrauded check looks. The AARP has a report detailing the accounts of check washing victims. Some reported that they were awestruck that their stolen checks looked just like a regular transaction.

What are the problems that arise from check washing?

One of the biggest dangers of check washing is that it is a “contactless” crime. Unlike phone scams or phishing attempts, a victim doesn’t need to be tricked into divulging sensitive information. All that needs to happen is for a fraudster to peek into your mailbox and find a signed check to start the entire process.

Check washing does more than take money out of an account. Cybersecurity firms have pointed out that check washing is part of a larger ring of fraudulent activity. With a washed check, a thief has access to:

• Your money: The first, immediate thing you’ll lose is money from your checking account. Because of the washing process, it’s possible to lose all of your money from a single transaction—or even more.
• Your banking information: Checks contain your account number and financial institution’s routing number. Fraudsters can use this info to commit fraudulent digital transactions.
• Your personal information: Your name, address, and signature could be used to take out loans, credit cards, and even new accounts. These fraudulent activities can ruin your credit score or make you an easier target for more scams.

Since a stolen check can spiral into much larger problems, it’s crucial to do everything possible to prevent it from happening to you.

How do I minimize my risks of being a victim of check washing?

The most important thing you can do to prevent check washing is to be proactive. Be mindful of how you write and send checks and adjust your behavior accordingly.

For your convenience, we’ve summarized some prevention tips as provided by the United States Postal Inspection Service and AARP:

• Pay bills online. Since check washing requires a physical document, switching to electronic transactions can dry up the process. Never use public Wi-Fi for financial transactions. Instead, connect to a secure, encrypted network first.
• Use money transfer apps. If you like sending checks as gifts or favors to friends and family, go paperless ASAP. Try trusted apps like PayPal, Cash App, or Zelle to send money to people you know.
• Write with gel ink. If you must send out a check, use pens with non-erasable gel ink. This ink soaks into the paper more deeply than ballpoint inks, making them harder to “wash.”
• Send checks through the post office. Fraudsters try to steal checks from mailboxes. You can circumvent this path of attack by going to your local post office during business hours and passing along your mail in-person.
• Deposit mail on-time. The blue USPS collection boxes have posted pickup times. Try to deposit your mail as close to the pickup time as possible. If you arrive at the collection box after the posted time, wait until the next available day to deposit.
• Never leave mail in the mailbox. Deposit your mail or retrieve a delivery as close to the pickup time as possible. If you plan to be out of town, ask a trusted friend to pick up your mail for you or request a hold mail service through the USPS.
• Monitor your bank accounts. Use your financial institution’s digital banking platform or mobile app to check your balances every few days for suspicious activity. You can view scans of processed checks so you can verify their integrity.
• Report incidents ASAP. Your financial institution can help you replace stolen funds, but only within a very limited time—usually 30 days from the transaction date. If you suspect you’ve been a victim of check washing, report it to the US Postal Inspection Service and credit reporting agencies.

By learning about check washing and how to prevent it, you can protect your finances. Visit First Florida’s fraud prevention tips articles to learn more about fraud prevention.