Checks are typically considered to be a more secure way to send money through the mail than cash. But according to the U.S. Postal Inspection Service (USPIS), there are reasons to forego mailing either one.
Check washing scams, in which a check’s payee name along with the dollar amount are changed and the check is fraudulently deposited, are more common than you might think. The USPIS said it recovers $1 billion in counterfeit checks and money orders each year.
As the holiday season gets into full swing, it’s worth taking note of the practice, which involves stealing checks from people’s mailboxes and then using chemicals to remove — or "wash" off — the ink.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The practice is part of a broader year-round scam problem, but fraudsters take advantage of the busy holiday season, in particular, as noted in a recent Visa scam alert in time for the holidays report, which predicts an uptick in shopping fraud schemes this season. The Better Business Bureau also recently reported that there is a new scam that targets holiday shoppers , which involves an imposter posing as a delivery person attempting to get you a package.
Scams and grandparents
As for check washing scams, fraud is on the rise despite a decrease in the number of people in general who still use checks. According to a report earlier this year from the Treasury Department's Financial Crimes Enforcement Network (FinCEN), it received 350,000 suspicious activity reports regarding potential check fraud in 2021. Last year, the number doubled to more than 680,000.
But there are still times that you should be wary of mailing cash, too. According to a July 2023 U.S. Postal Service (USPS) bulletin, beware of the so-called “grandparent scam,” in which a scammer gathers information about a person, contacts that person’s grandparent and tells them their grandchild is in trouble and needs money. This type of scam has become easier and more prevalent thanks to advancements in artificial intelligence technology, the USPS said.
What to do
The USPIS said you may have been a victim of check washing if you send a check and the recipient never receives it.
If you are planning to send checks, it recommends taking the following steps as protective measures:
- Deposit your mail before the last pickup or drop it off at the post office itself
- Never leave mail in your mailbox overnight
- Have a friend check your mail if you’re out of town, or keep it held at the post office until you get back
RELATED CONTENT
-
Stock Market Today: Stocks Rally Despite Rising Geopolitical TensionThe main indexes were mixed on Tuesday but closed well off their lows after an early flight to safety.
-
What's at Stake for Alphabet as DOJ Eyes Google's ChromeAlphabet is higher Tuesday even as antitrust officials at the DOJ support forcing Google to sell its popular web browser. Here's what you need to know.
-
Visa, Mastercard's Swipe Fee Settlement Might Save You Money, For NowThe limited-time agreement directly benefits merchants, which can potentially pass savings on to consumers.
-
New List Out On Medicare Part B Drugs Eligible for RebatesSome Medicare beneficiaries may pay lower coinsurance rates from April 1 to June 30 for the drugs, HHS says.
-
Use An iPhone? You May Be Hearing From A Class-Action Lawsuit GroupA handful of suits against the iPhone maker seek to crack down on everything from app store purchases to messaging.
-
Capital One/Discover: What's In Their Wallet For You?Push back on Capital One's planned merger with Discover is growing with one group of consumer advocates calling for a public hearing.
-
Lawmakers: Nix Social Security Offsets For Seniors In Student Loan DefaultOffsetting Social Security benefits to pay for defaulted student loans can be devastating for some beneficiaries, lawmakers say.
-
Stellantis Recalls 285K Vehicles Over Airbag ProblemsDefective airbag inflators on certain Chrysler and Dodge vehicles could rupture and cause injury or death, NHTSA says.
-
HHS Funding Secured As Major Government Shutdown AvoidedWith passage of the fiscal 2024 appropriations package, Medicare and Social Security are among the key agencies to receive funding through September 30.
-
State Farm To Exit Homeowner Renewal Policies in CaliforniaState Farm plans to send non-renewal notices to 72,000 home and apartment policyholders starting this July.
