According to AARP the low-tech crime of check washing is on the rise. There are various reasons for this increase, but the main reason is that it works! Lots of folks are still using paper checks to pay their bills and thieves are taking advantage. Read on for more about what it is, how it happens, and what you can do to avoid being a victim.
Check washing is a fairly simple crime to commit. Thieves find a paper check and literally “wash” the amount, and the Pay To, lines of your check. How? They use various chemicals such as acetone and even common bleach to carefully remove (wash off) the payee’s name and amount. They are very careful not to wash your signature line. That remains valid. Once dry, they fill in a new amount and payee. Voilà! If the bank or online deposit app doesn’t notice anything amiss, the check is cashed and the thief long gone before anyone is the wiser.
It's happening because many people, especially older folks, still like to use checks to pay bills. In doing so, they are making it easy for check washers to steal from them without even realizing it. Most thieves intercept the check at some point in the mailing process. From your mailbox if you use it for outgoing mail, or from USPS collection boxes, or even from robbing US mail carriers! Once they have the check, that’s all they need.
Here are five tips on how to avoid being the victim of check washing.
Go digital! That’s right, pay online. We’ve reached a point where electronic payments and transactions can actually be safer than mailing a paper check. Be sure you are on a secure site (look for the lock in the URL), are actually on the correct site (your bank, a vendor you owe, etc.), and try to avoid using public WiFi when bill paying. You can also put many utilities, landlords, services, etc., on autopay and have the bill debited directly from your checking or savings account, or billed via credit card.
Use blue or black non-erasable gel ink that cannot be washed. This type of ink is much more difficult for check washers to remove.
Get mail savvy. If you must pay by paper check avoid leaving envelopes in your own mailbox for the letter carrier to pick up. And, be sure you collect your mail from your mailbox as close to the delivery time as possible every day. Don’t even use the famous blue USPS collection boxes for letters that contain checks. And, especially don’t drop mail into these collection boxes after the last pickup time of the day. Take your letter with the check inside the post office and hand it to a clerk or deposit it in the inside mail drop.
Monitor your bank account closely. Go online every few days to make sure there is no suspicious activity or sudden, large withdraws that are unfamiliar to you. Likewise, it’s good to monitor and check your credit reports every quarter.
Finally, if you are a victim of check washing, report it immediately. Contact your bank as soon as you are aware of the crime. Many banks will be willing to work with you on replacing the funds, but you need to report the crime. Most have a limited, 30-day window for this. You will also want to consider filing a report with the US Postal Inspection Service and even your credit reporting agencies.
Given the rise in this crime, it may be time to chuck the paper check. At the least, consider reducing the number of checks you write. As an independent Certified Financial Planner™ I can help you establish and maintain better financial habits. Contact me and let’s get started! #talktometuesday #education #Hireaplanner #stressfree #savings #moneyeducation #financialeducation #CFPPro