By Amy Miller, AFC with America Saves in partnership with the American Association of Credit Union Leagues, America’s Credit Unions, and TruStage.
Even in a digital world, checks (paper or electronic) contain valuable information that criminals can use to steal money or commit fraud. At the same time, scammers are increasingly combining traditional check scams with electronic payments, mobile deposits, and peer-to-peer payment apps.
Understanding the most common types of check fraud can help you recognize warning signs and better protect your money.
1. Mail Theft
One of the most common ways check fraud begins is through stolen mail.
Criminals may target residential mailboxes, apartment mailrooms, or public collection boxes looking for outgoing checks such as rent payments, utility bills, or personal checks.
Once stolen, those checks may be altered, copied, or used to access personal banking information.
To reduce risk:
- Drop mail inside the post office when possible
- Avoid leaving outgoing checks in unsecured mailboxes overnight
- Monitor expected payments and mail delivery closely
2. Check Washing
Check washing happens when a thief steals a completed check and removes the ink using chemicals. Once the original writing is removed, they rewrite the check with a new payee name or a larger amount.
For example, a $50 utility payment could become a $500 payment to a fraudster.
Even a small check can be changed into a much larger fraudulent payment.
Using permeant gel pens and avoiding blank spaces on checks may help reduce the resik of alteration.
3. Counterfeit Checks
Counterfeit checks are fake checks created using real bank account information. Scammers may use stolen logos and routing and account numbers to print checks that look legitimate. This can happen after mail theft or data theft.
Counterfeit checks may be used to make purchases, withdraw cash, or scam others.
Just because a check looks official does not mean it is legitimate.
4. Fake Check Scams
Fake check scams often begin with an unexpected opportunity or payment.
A scammer may:
- Offer a fake job
- Send a prize or lottery payment
- “Overpay” for an online purchase
- Send money for supplies or equipment
The victim is then instructed to deposit the check and quickly send some of the money back.
Many of these scams now involve electronic checks, mobile deposits, or peer-to-peer payment apps. A scammer may email a digital check image, ask someone to deposit it through a banking app, and then pressure them to send money electronically before the check fully clears.
Although funds may appear available in an account, the check can still later be rejected and could leave the victim responsible for the lost money.
Young adults, first-time workers, and online sellers are frequently targeted by these scams.
5. Forged Checks
Forged checks happen when someone signs or changes a check without permission.
This may include:
- Signing another person’s name
- Altering payment information
- Changing endorsement details
Forgery can happen through stolen checkbooks, lost checks, or unauthorized access to financial information.
Monitoring your account regularly can help you spot suspicious activity sooner.
Why This Matters
Check fraud continues to evolve, and scammers are finding new ways to combine traditional check fraud with digital payment methods.
The good news is that awareness and simple habits can help reduce your risk.
Understanding how these scams work can help you:
- Spot warning signs earlier
- Avoid common scams
- Protect your banking information
- Take action quickly if something seems wrong
How to Protect Yourself
- Monitor your accounts regularly
- Set up banking alerts
- Be cautious with unexpected checks or payments
- Never send money back based on a deposited check alone
- Use secure mail drop locations whenever possible
