Checks are still used for everything from paying bills to sending money to friends and family. While they can be a convenient way to make payments, they also require a little care. Checks can be stolen from the mail, altered after they’re written or counterfeited using information from legitimate accounts. Knowing what to watch for can help you spot a problem and take steps to protect your money.
Common check scams
A check that looks real
Some counterfeit checks are designed to look just like the real thing, including personal checks, business checks and cashier’s checks. Scammers may even use the name and account information of a legitimate person or business, making the check difficult to recognize as fake. If something about a check seems unusual, contact your bank before depositing it or using the funds.
A check that’s been changed
Check washing happens when someone steals a check and uses chemicals to remove the original writing, allowing them to change the payee or amount. Checks sent through the mail can be particularly vulnerable because fraudsters may steal them before they reach their intended recipient, then alter and deposit them without your knowledge.
A check for more than you’re owed
Imagine selling something online and receiving a check for more than the agreed price. The buyer asks you to deposit it and send back the difference. The check may initially appear to be legitimate, but if it later turns out to be fraudulent, you could be responsible for the money you sent. Be cautious whenever someone asks you to return part of a payment or send money elsewhere after receiving a check.
How to protect your checks
A few simple habits can make checks harder to alter and help you catch suspicious activity sooner.
- Use permanent black ink, and fill in the payee and amount lines completely, leaving as little blank space as possible for someone to change the details.
- Avoid leaving outgoing mail in your mailbox overnight. When possible, take it directly to the Post Office or use a secure postal collection method.
- Review your statements and transaction history regularly. If your bank provides images of paid checks, look for changes to the payee or amount and make sure the endorsement matches the intended recipient.
- Consider other payment methods. Electronic payments may be a practical alternative for recurring bills and other transactions, depending on your needs.
What to do if you suspect check fraud
If you think a check has been stolen, altered or deposited without your authorization, contact your bank as soon as possible. They can help you determine the next steps to protect your account.
- Report the suspected fraud to your bank and ask how to secure your account.
- Ask whether a stop payment can be placed on a stolen check that hasn’t been cashed, if applicable.
- Review your account activity for other unfamiliar transactions.
- Keep copies of relevant checks, transaction details and communications.
- If the incident involves stolen mail, report it to the U.S. Postal Inspection Service. You can also report suspected fraud to the Federal Trade Commission at ReportFraud.ftc.gov.
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