When you think of modern scams, your mind might jump to cryptocurrency catfishing or AI-generated deepfakes. But here’s a surprising fact: one of the fastest-growing crimes in 2023 was actually check fraud. According to the Financial Crimes Enforcement Network, check fraud incidents increased by a staggering 400% last year, costing Americans $26.2 billion. This old-school scam is wreaking havoc, and it’s time to ensure you’re not the next victim.
How Check Fraud Happens
Check fraud might seem outdated in the digital age, but criminals have found highly effective ways to exploit this method. Here’s how they’re doing it:
Stealing Checks from Mailboxes
Many scammers simply swipe checks right out of your mailbox. Some even use universal keys to open United States Postal Service (USPS) drop boxes, which are sold in private groups on platforms like Telegram, Facebook, or TikTok.
Altering Checks with Chemicals
Fraudsters use household chemicals like acetone to dissolve the ink on checks. Once the ink is removed, they rewrite the check, making themselves the payee and often inflating the amount.
Cashing Checks Quickly
The altered checks are deposited either at ATMs or via mobile banking apps. Scammers then withdraw the funds in small chunks to avoid triggering fraud alerts. By the time the fraud is detected, the money is long gone, often spent on luxury goods, gambling, or even real estate.
What Are Banks Doing About It?
To combat the surge in check fraud, banks have implemented stricter deposit policies. This includes extended hold times for checks to ensure authenticity. While these measures protect against fraud, they’ve also led to longer wait times for funds to clear. Notably, a viral TikTok glitch in 2023 exploited J.P. Morgan’s instant deposit feature, underscoring the need for heightened security.
5 Ways to Protect Yourself
Follow these steps to safeguard your checks and prevent becoming a victim of fraud:
1. Use a Locking Mailbox
Invest in a USPS-approved locking mailbox. These mailboxes add an extra layer of security, making it harder for casual thieves to access your mail. Prices start around $99.
2. Set Up Banking Notifications
Monitor your accounts closely by enabling alerts for suspicious activity. For instance, you can set notifications for withdrawals over a certain amount or any unusual transactions.
3. Avoid Using Mail for Payments
Skip the mailbox altogether for payments. Apps like Zelle, Venmo, and PayPal, or direct ACH transfers, offer safer alternatives. If you must send checks or sensitive items, drop them off at a post office instead of using outdoor mailboxes.
4. Sign Up for USPS Informed Delivery
USPS’s Informed Delivery is a free service that lets you track incoming mail online. You’ll know if something’s missing before it arrives, helping you act quickly in case of theft.
5. Use Fraud-Resistant Pens
Simple yet effective: use pens designed to prevent ink alteration when writing checks. These pens make it much harder for fraudsters to erase and rewrite your checks.
What to Do If You’re a Victim
If you suspect check fraud, take immediate action:
- Contact your bank: Report the issue and freeze your account if necessary.
- File a report with USPS: Notify the postal service if the fraud involved stolen mail.
- Involve the police: File a police report and request a case number to track progress.
Why Baby Boomers Are at Risk
Baby boomers remain the largest group of check users, often resistant to adopting digital payment methods. Their reliance on traditional checks makes them more vulnerable to this type of fraud. Encouraging awareness and adopting secure practices can significantly reduce their risk.