Latest news with #checkfraud
Fox News
18-05-2025
- Business
- Fox News
Check washing crisis fueled by AI and mail theft
Once considered an old-fashioned crime, check washing has roared back to life with alarming sophistication. Criminals are not just targeting personal checks anymore. They are exploiting every vulnerability in the mailing and banking system to cash in on stolen funds. As check fraud incidents continue to rise sharply across the country, it is more important than ever to understand how check washing works and what you can do to protect yourself. Here is what you need to know to stay ahead of the scammers. Check washing fraud happens when a scammer steals a check you have written, erases the ink using chemicals like acetone or nail polish remover, and rewrites it to a new recipient. Often, they will change the amount to something much higher. The altered check is then deposited or cashed, and the funds are drained from your account before you even realize something is wrong. Why it's dangerous: Unlike digital fraud, check washing often goes unnoticed until long after the damage is done. Because checks can take days or even weeks to clear through the banking system, criminals have plenty of time to deposit altered checks and move funds before victims realize anything is wrong. By the time the missing money is discovered, tracing it back to the scammer can be extremely difficult. This delay makes it critical to monitor your accounts closely and act quickly if you spot any suspicious activity. Since 2023, check fraud has exploded in the United States. The surge in fraud reports reflects more than just isolated criminal acts. Organized crime rings are increasingly turning to check washing as a hybrid crime, blending old-school mail theft with new digital tools like AI. Fraudsters now use advanced technologies to forge identities, alter check images and exploit gaps in banking security, making check washing more sophisticated than ever. As financial institutions strengthen cybersecurity defenses, scammers are targeting physical mail systems as a weaker link to bypass digital barriers. Real examples: s Fraudsters have adapted their methods to stay ahead of law enforcement and banks. Criminals are combining old techniques like mail theft with new digital strategies, making check washing harder to recognize and prevent without proactive security measures. Recent advancements in AI technology have made it easier for scammers to forge realistic-looking documents, generate convincing fake identities and create sophisticated phishing emails. AI-generated fake IDs and altered check images can pass basic verification checks that would have caught manual forgeries in the past. This shift means check fraud is no longer just a matter of stealing a physical check, but exploiting digital vulnerabilities at every stage of the banking process. Here are 14 essential protective measures to shield yourself from check washing scams. 1. Use a black gel pen: When writing checks, always use a black gel pen. The ink is much harder to remove compared to regular ballpoint pen ink. 2. Bring checks directly to the post office when mailing them: If using a mailbox, make sure to drop off your mail before the final scheduled pickup so it is not left sitting overnight. 3. Sign up for USPS Informed Delivery: Stay ahead by signing up for USPS Informed Delivery. You will receive digital previews of incoming mail so you can monitor for any missing items early. Learn more about why it's important here. 4. Monitor your bank accounts: Set up real-time alerts for check clearing and review your statements weekly to catch any suspicious activity. Also, ask your bank about any other fraud-prevention tools they offer to protect your accounts. 5. Switch to digital payments when possible: Use your bank's mobile app to deposit checks without mailing or physically delivering them, reducing the risk of theft or tampering. 6. Use checks with built-in security features: Choose checks printed on paper with watermarks, chemical-sensitive coatings or other security features that make check washing much harder. 7. Limit the information on checks: Avoid unnecessary personal details. Do not print your Social Security number, driver's license number or phone number on your checks. The less information available, the less a fraudster can use. 8. Store checks securely: Keep blank checks in a safe place. Store your checkbook in a locked drawer or safe, not in your purse, car or an easily accessible location at home. 9. Check your mailbox security: Install a locking mailbox. If possible, use a mailbox with a lock to prevent thieves from stealing outgoing or incoming mail. 10. Be cautious with endorsements: When endorsing checks, write "For Deposit Only" along with your account number to prevent others from cashing the check. 11. Enroll in identity theft protection with check fraud specialization: Choose services that specifically monitor for compromised check details on dark web marketplaces and alert you to suspicious check-cashing patterns. Identity theft protection services monitor your personal data across the dark web and public databases, alert you to suspicious activity and assist you in locking down your accounts if needed. See my tips and best picks on how to protect yourself from identity theft. 12. Invest in personal data removal services: Minimize exposure of sensitive details (like addresses or banking affiliations) that fraudsters could exploit for check-washing scams. Removing your personal information from these sites can help reduce your risk of becoming a victim. While no service can guarantee the complete removal of your data from the internet, a data removal service is really a smart choice. They aren't cheap and neither is your privacy. These services do all the work for you by actively monitoring and systematically erasing your personal information from hundreds of websites. It's what gives me peace of mind and has proven to be the most effective way to erase your personal data from the internet. By limiting the information available, you reduce the risk of scammers cross-referencing data from breaches with information they might find on the dark web, making it harder for them to target you. Check out my top picks for data removal services here. 13. Shred sensitive documents: Shred old checks and bank statements. Don't just throw them away. Shred any documents with sensitive banking information. 14. Report suspicious activity immediately: If you suspect check fraud or missing mail, report it to your bank and the U.S. Postal Inspection Service right away. 15. Use Positive Pay if you are a business: Positive Pay is a fraud prevention service offered by most banks to business customers. It works by matching the checks you issue with the ones presented for payment. If something doesn't add up, like a changed amount or payee, the bank flags it for your review before it's processed. You usually need to sign up through your bank, and there might be a fee, but it's a smart way to protect your business from check fraud, especially if you write a lot of checks. What to do if you are a victim If you think you have been targeted by check fraud: Time matters. The faster you act, the better your chances of recovering lost funds. Check washing fraud is growing rapidly, and criminals are becoming more organized and sophisticated. Simple habits like using gel pens, securing your mail and monitoring your financial accounts closely can make a big difference. Services like USPS Informed Delivery, Positive Pay for businesses and personal data removal tools provide added layers of protection. Identity theft protection services can also offer critical support if you ever become a victim of check fraud. Have you or someone you know experienced check fraud? Let us know by writing us at For more of my tech tips and security alerts, subscribe to my free CyberGuy Report Newsletter by heading to Follow Kurt on his social channels Answers to the most asked CyberGuy questions: New from Kurt: Copyright 2025 All rights reserved.
Yahoo
11-05-2025
- Business
- Yahoo
Maryland customers had checks and money orders altered and stolen after mailing them from local post offices
When you write out a check and put it in the mail, you expect it to arrive at its proper destination and to get cashed by its intended recipient. But a number of Maryland customers recently learned the hard way that this outcome isn't always a given. According to WMAR-2 News, several people mailed checks and money orders from their local post offices only to learn that those payments were later altered and stolen. In fact, three customers reportedly had their checks stolen at two local post offices during the span of a few weeks. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Darlene Mclean sent payments through the post office to cover her mortgage and a BJ's credit card bill, but those money orders were altered and cashed by a criminal. Now, Mclean is struggling in the absence of those funds. "I'm without money. Mortgage not paid, and now they're coming after me," Mclean told WMAR-2 News. "I'm suffering from it. I'm depressed behind it. I can't sleep. I'm really upset." John Curtis, one of the customers who had money stolen, decided to mail payments from directly inside his local post office as opposed to simply dropping envelopes into a community mailbox. Little did he know that this seemingly safer option would backfire on him, as the $323 check that he had written to pay for his insurance was reportedly changed to $900 for 'equipment.' "I put my policy number on the bottom, all of that was gone," said Curtis, who wound up having to close his bank account and open a new one in order to re-route other payments and deposits. Curtis has a sick wife and has been in and out of the hospital himself, so this was the last thing he needed, he told WMAR-2 News. The three customers who fell victim to the theft reportedly mailed their payments at two different post offices — Windsor Mill and Arlington Station — all within a few weeks of each other. Angela Powell sent a $420 payment to her insurance company, but she learned the next day that it had been altered to $6,250 for a supposed 'college fund.' "They took my check from Windsor Mill post office to SECU Bank in a matter of 24 hours.' Thankfully, Curtis and Powell were both reimbursed by their banks for the missing funds, but Mclean has not yet received reimbursement for her stolen money. Read more: BlackRock CEO Larry Fink has an important message for the next wave of American retirees — here's how he says you can best weather the US retirement crisis In response to WMAR-2 News' request for comment, a spokesperson from the United States Postal Service (USPS) issued the following statement. "The Postal Service takes the security of mail seriously and always promptly refers allegations of mail thefts to the appropriate law enforcement agency. Mail thefts by anyone will not be tolerated." The U.S. Postal Inspection Service, which investigates mail theft, also shared a statement with WMAR-2 News. 'Our Baltimore Field Office was not aware of these complaints. The theft of mail and ensuring the sanctity of the US Mail-stream is of the utmost priority to the US Postal Inspection Service. We encourage customers to mail their checks from inside of the post office if possible, or before the collection time when utilizing the blue collection boxes.' Given that the three incidents of theft above occurred in close proximity to each other and within a short timeframe, there's a question as to whether a postal service employee may have been the perpetrator. The USPS Office of the Inspector General is responsible for investigating complaints of internal mail theft. Following WMAR-2 News' request for comment, a spokesperson could not confirm an active investigation but said the OIG would review the details of the situation. Now, the impacted customers say they'll be making changes to the way they write their checks. Powell, who is very angry about the situation, said she'll be writing out checks with black magic marker, which is harder to alter. "So I can't mail anything without being in fear of someone taking what's inside my personal belongings?" said Powell. "Just because it's going through the postal service, it's still mine. You have no right to go in my mail and take out what's in it, and they still have one of my checks to this day." Powell wants to press charges against the criminal who altered and cashed her check, but she's reportedly waiting for her bank to produce images of the culprit committing the crime. Mclean, meanwhile, is working with the Maryland Volunteers Lawyer Service to work out a deal with her mortgage company. She's now worried that her home could be foreclosed due to the missing payment. The U.S. Postal Inspection Service has also increased its monetary reward to $100,000 for anyone who can provide information on mail theft that leads to an arrest and conviction. Unfortunately, it appears to be all too easy for criminals to get away with washing and altering checks in the mail. Normally, a good way to prevent this would be to mail your checks from inside a post office instead of using an outdoor mailbox, but that unfortunately didn't work for Curtis. He mailed his check from inside the post office and still had it stolen. That's why it's important to monitor your checking account regularly after writing checks. Or, better yet, see if you can send checks and payments directly from your bank. Checks sent through a bank still go through the postal system but can be harder to alter because of the way they're printed. Also, when you send a check through your bank directly, there's an electronic record of the original payee. So, even if the check is stolen, you have more protection since you can prove that fraud has occurred. If you can't send checks directly from your bank, use a permanent black marker to write out your checks so they can't be washed. Also, don't leave blank spaces in the payee or amount lines. It's also important to protect the checks you might be receiving as those can also be stolen and cashed. In fact, it's a good idea to collect your mail as soon as it's been delivered — you can even buy a mailbox sensor that sends an alert when your mailbox has been opened. You may also want to install a security camera in front of your home with a visual on your mailbox to deter or catch thieves. Additionally, you can sign up for Informed Delivery from the USPS, which sends you daily notifications by email of incoming mail and packages. If you're heading out of town for a while, you can arrange to have your mail put on hold by the post office. You also shouldn't hesitate to notify the USPS Office of the Inspector General if you think you've been a victim of mail fraud. Want an extra $1,300,000 when you retire? 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