Consumer Alert: Keep Your Mail Safe from Check Theft and Scams

Friday, July 26, 2024

We have recently been alerted about an uptick in scammers stealing checks. People mail a check, often to pay a routine bill, and a check thief will intercept the check and “wash” it by changing both the amount and the payee. In another version of the scam, scammers print a counterfeit check made out to the scammer with the victim’s bank account number on it and then deposit the check. Victims of this scam discover the crime when their bank balance drops significantly and their desired payee never receives their payment.

In one recent example, a North Carolinian wrote a check for $105.98 to pay a utility bill and mailed the check through the U.S. Postal Service. The check was stolen and the thief changed the check to read $10,000 and payable to an unknown payee, withdrawing $10,000 from the consumer’s account. After filing a complaint with our office’s Consumer Protection Division, the Raleigh Police Department, and their bank, the consumer was eventually able to recover their stolen money, but it took several months to get their money back.

Follow our tips to try to protect yourself against check theft:

• Stay secure. The safest way to protect against check theft is to make payments online either using a credit card or by direct withdrawal from your bank account. When making online payments, make sure that the device you are using is secure and is not connected to public Wi-Fi.
• Always use blue or black gel pens. If you send a check via mail, only use blue or black gel non-erasable pens. It is harder for bad actors to alter your checks if permanent dark ink is used.
• Use security checks. Most financial institutions offer security checks that contain a hologram and are printed on safety security paper, which make it more difficult for scammers to wash or reproduce checks. These checks are more expensive than regular checks but can help safeguard against check alteration or copying.
• Be conscious of when and where you drop off checks. Do not drop envelopes containing checks in your personal mailbox or an outdoor USPS collection box after its final pick-up time. Make sure you are bringing mail-in payments to your post office during normal business hours. Hand your envelope directly to a mail clerk when possible.
• Check your bank account balance frequently. Check your bank balance weekly so you can quickly spot a reduction in your bank balance which may indicate a fraudulent check has been issued from your account. If you have a small business and use checks often, check your balance several times a week.
• Don’t wait. If you spot an unauthorized withdrawal or a fraudulent check issued from your account, notify your bank or credit union immediately and report the theft to your local police department. Some financial institutions require customers to report fraud in as little as two weeks in order for the financial institution to cover the customer’s loss; others allow customers up to 30 days. The longer you wait to report the fraud, the more difficult it will be to recover your funds.

If you believe you have been the victim of check theft or if you have questions, contact our office’s Consumer Protection Division at www.ncdoj.gov/complaint or 1-877-5-NO-SCAM.