In addition to all the technology scams we hear about, a low tech scam known as check washing is still around and is a direct and immediate threat to your bank account.
If you are still writing physical checks rather than using your bank’s bill pay service, you need to take precautions.
Mail Security is Financial Security
Check washing nearly always begins with mail theft. A criminal steals an outgoing check (often targeting unsecured residential mailboxes), uses common household chemicals (like acetone or bleach) to “wash” off the handwritten details—the payee’s name and the dollar amount—leaving only your valid signature. They then rewrite the check to themselves or someone they know for a much larger sum and cash it, draining your account.
Here are three ways you can dramatically reduce your risk:
1. Use the Right Pen: Use a permanent black gel ink pens instead of a standard ballpoint pen, which are easy for criminals to lift or “wash” off the paper. Gel ink permeates the fibers of the check paper, making chemical alterations nearly impossible without damaging the check itself.
2. Avoid Unsecured Mailboxes: Never leave outgoing checks in your residential mailbox for the carrier to pick up. That’s a convenient target for thieves canvassing neighborhoods. They look for mailboxes that have the red flag up.
3. Go right to the USPS: The safest practice is dropping outgoing checks directly inside the post office. If you’re using a collection box, do so just before the last collection time and look for the newer ones that have a slot for a letter to be put inside rather than a large opening.
Even with the strongest personal security, fraud remains a real risk. As your Daily Money Manager (DMM) my core role is to be your extra set of eyes and provide the vigilant, meticulous, oversight required to stay informed on the latest threats and catch potential fraud before it spirals out of control.
The best way to detect check washing is through routine account monitoring. For a Daily Money Manager, this is a core, non-negotiable task that provides critical protection:
∙ Regular Reconciliation: By reconciling your bank statements against your internal records and transaction logs on a timely basis, we can spot an unauthorized payee or a suspicious, inflated amount discrepancy.
∙ Prompt Action: If a check washing incident happens, immediate action is vital. We can act instantly to alert the bank, file the necessary police reports, and begin the process of challenging the charge, recovering funds, and protecting the compromised account from further loss.
Ultimately, shifting to electronic bill pay is the most foolproof method. But if you must write a physical check, remember that the security of that payment relies on the pen you use and the mailbox you choose.