Check washing is a form of check fraud dating back to the 1980s that’s now making a comeback with new and improved methods. According to AFP reports, 65% of respondents in a survey disclosed that their organizations faced check fraud attacks in 2023, with only a few successfully recovering all their funds.

If you fall victim to check washing fraud and fail to report it before fraudsters cash the check, you may lose a large portion of your finances with slim chances of recovering it. To avoid this scenario, you need to take adequate measures to protect your identity and financial assets.

In this detailed guide, we’ll show you what check washing scams are, how they work, how to prevent them, and what steps to take if a scam like this ever happens to you.

What Is Check Washing Fraud?

Check washing is the process of rewriting the information on stolen checks. The fraudsters steal mail from various locations, including private and public U.S. Postal Service mailboxes, and then use chemicals to clean out the ink. Afterward, they rewrite the names of the payees and the amounts on the blank check, and then visit the bank to deposit the check.

According to Randy Hutchinson, the president and CEO of the BBB of the Mid-South, this fraud has led to over $815 million in yearly losses.

Another way scam artists steal checks for washing is by ambushing postal carriers and stealing check envelopes from them.

Through these methods, fraudsters recover all kinds of checks, including personal, government-issued, and business checks.

Some criminals take it one step further—they use the details on the check to perpetuate more identity theft crimes. The fraudsters produce fake IDs, passports, licenses, and more to commit crimes in the victim’s name.

Washing a Stolen Check—How Does It Work?

This is what the check washing process looks like in detail:

• Collecting the mail—Mail thieves scout their neighborhoods and public mail collection points for outgoing mail and steal checks from there. Their most common targets are mail panels in apartments, collection mailboxes, free-standing and crowded mailboxes, dumpsters, and postal vehicles
• Preparing the check—They place sticky tape across the signature area to protect valid and valuable inscriptions on the stolen checks since the check is invalid without a signature
• Preparing the cleaning solution—The fraudsters prepare the chemicals necessary for check washing, usually from regular household cleaning products. Chemicals like acetone, benzene, bleach, clear correction fluids, etc., are among the top choices for wiping out handwritten information on checks
• Washing the information—They place the check in the cleaning solution until the written ink comes off, revealing a blank check. Then, they hang the slip out to dry, after which they peel off the sticky tape to reveal the signature. All that’s left is to write their preferred name and a new figure (usually a higher amount than the original) on the blank check
• Cashing the check—Finally, they head to the bank to deposit and cash the check. Alternatively, some crime groups use a money mule to make the deposits for them instead

Proactive Ways To Prevent Check Washing Scams

The challenge with check washing scams is that you may not realize you’ve been defrauded until the intended check recipient informs you that they didn’t receive payment or you get a debit notification that exceeds the amount you stated on the check.

By the time you realize washed check fraud has occurred, your money may be long gone. Still, there are proactive ways to keep your checks/money safe from this type of fraud:

1. Use online banking services to spot account inconsistencies
2. Properly dispose of unused checks
3. Choose checks that contain multiple security hallmarks
4. Use indelible pens with black gel inks
5. Report missing checks immediately

Use Online Banking Services to Spot Account Inconsistencies

Online banking services can help you keep an eye on your account remotely so you can make sure the right recipient gets your check. If you send a check via mail, use your financial provider’s online banking services to track the status of your check like this: 

• Check if the amount written on your check matches the cashed one when you receive an alert
• Verify that the intended recipient cleared the check 
• Review your online bank statements at the end of every month to identify account inconsistencies with your account. Here, you’ll find checks that haven’t been cleared or notifications about overdue payments

Choosing to pay bills online by setting up recurring payments can also help you mitigate check washing fraud since there’s no paper check for fraudsters to steal.

If you must go for a check payment option, choose a bank or financial service provider that uses Positive Pay for fraud protection. This service helps banks verify checks based on the amount, check number, and recipient’s details you provide. 

If the check presented at the bank doesn’t match the details you sent electronically, the bank will alert you and stop the transaction.

Properly Dispose of Unused Checks

If you make an error on a check and want to dispose of it, never throw it in the trash before removing your sensitive information.

Scammers and identity criminals stop at nothing to get their hands on your sensitive information, including digging through your trash. If they find a check in your dumpster, they can also perform washing checks fraud and steal your identity.

To dispose of sensitive documents like your unused checks, do this:

• Destroy unused checks using a paper shredder
• If you have large quantities of checks to dispose of for your business, use a professional shredding company. Vet the company to ensure it has a spotless reputation before requesting its services 
• Following fire safety measures, burn unused checks to completely destroy your sensitive information
• Soak your checks in water to disintegrate them and make them unreadable, then properly dispose of the remnants

As a note of warning, you shouldn’t opt for tearing checks as a disposal method—a check is properly shredded only when the information on it is no longer decipherable.

Choose Checks That Contain Multiple Security Hallmarks

Since check fraud has been around for a long time, check issuers have introduced different means of identifying fake checks to reduce criminal activities. 

One of the ways they do this is by including hallmarks or security identifiers on the checks to help banks spot fake ones. Different bank checks use varying hallmark features, but take a look at a few common ones and what they do:

Hallmark/Identifier	Function and Appearance
Void pantograph	This hallmark exposes words like “void” or “invalid” on duplicated checks, indicating to the bank that the check is invalid
Invisible fiber	These fibers, although fluorescent, are invisible to the naked eye. The bank deems checks that don’t contain the fiber duplicated and invalid
Visible fiber	You can see a visible fiber on your check as it appears in different colors and lengths. Coupled with the invisible fiber, it serves as a dual-factor authentication for singling out fake checks
Watermark	The watermark is almost invisible—you can only discern it when you hold the check at an angle. Duplicating machines can’t copy a watermark
3D holostripe	This is a metal strip or seal some banks use on their checks. Holostripes are tough to recreate—almost impossible without the right equipment

Speak to your bank to find out if it offers these hallmarks on the checks it issues. If not, it might be a good idea to choose a different bank that provides these safety features.

Use Indelible Pens With Black Gel Ink

Check washers can easily wash checks using cleaning products because of the type of ink the writer used—they’re porous and easy to erase if you know how. But not even cleaning products can remove indelible ink.

If you must write a check by hand, use ballpoint pens with indelible black gel ink. You should also keep your writing tight, with minimal space for crooks to alter figures.

Avoid mailing a “convenience check” that you pick up from a counter because these checks require writing all the details by hand instead of using the personalized printed version issued by the bank.

If your organization issues many checks, consider printing the details on the checks instead of writing with a pen.

Report Missing Checks Immediately

If your bank is issuing you a new checkbook via mail, check washers can intercept it. They can take the whole checkbook, but they may also steal some of its pages and mail back the remaining ones so as not to arouse suspicion.

Always inspect your new checkbooks carefully to verify that all your checks are there. If a few pages of your checkbook are missing or the entire book never gets to you, inform your bank immediately and ask them to cancel unauthorized checks.

You may also ask them to stop outgoing payments from your account to keep your money safe.

How To Protect Your Mail from “Checks in the Mail” Fraud

Knowing that your mailbox is a gold mine for check thieves, these extra protective measures can help you keep your checks safe for mailing:

1. Hand your check mail directly to carriers—Don’t put mail containing checks in your mailbox. Instead, wait until the carrier comes and then hand the mail over to them. If you must put a check in your mailbox, don’t raise your mailbox flag
2. Activate a mail hold during vacations—Opt for USPS to hold your mail while you’re out of town. Never let mail sit in your mailbox overnight. Visit USPS.com to activate the hold, and they’ll keep your mail for up to 30 days
3. Use secure envelopes for mailing—Fraudsters have mastered the art of identifying checks even when they’re inside envelopes by holding them up against the light. Use envelopes with security tinting to mask check mail and deter criminals from stealing your checks
4. Keep your checkbook secure—Designate a safe spot in your home to keep your checkbook secure. Never leave your checkbook in your car or give it to anybody. Don’t sign on all of your checkbook pages if you’re not ready to use every page immediately 

What To Do If Washed Check Fraud Happens To You

If washed check fraud ever happens to you, waste no time in securing your assets. Use the guide below to quickly protect yourself.

1. Immediately report the check washing scam
2. Take steps to get your money back
3. Safeguard your assets as much as possible

Immediately Report the Check Washing Scam

Follow these quick steps to report fraudulent activity on your account immediately:

1. Read through your bank’s policy on check washing scams to get useful information about retrieving your money
2. Contact your bank as soon as you can (within 30–60 days), informing them about the stolen check. You’ll be required to fill out an affidavit
3. File a report with your local police department about the financial scam. If the check fraud was internet-based, contact your local FBI field office and report the issue to the Internet Crime Center. Also, report the case to the Federal Trade Commission, the BBB, and your state attorney general
4. If it was a case of “checks in the mail” fraud, contact USPIS and provide them with information about how the scam occurred
5. If the check hasn’t been cashed, move your funds to a more secure account to keep it safe during the process

Side Note: Remember to share helpful details about the scam with all the parties above. This could include pictures/screenshots, check numbers, bank statements, and anything else involved in the scam.

Take Steps to Get Your Money Back

Usually, banks should reimburse your funds if you report that your check was altered within a year of the incident. But the journey to recovery may be long and winded, spanning months or years. Sometimes, banks may even refuse to claim liability.

Here’s how to escalate or fast-track the situation if necessary:

Financial Institution (Your Check Issuer)	How To Escalate It
National banks or Federal Savings Association	Contact the Office of the Comptroller of the Currency’s Customer Assistance Group—use the search tool HelpWithMyBank to find your bank’s regulator
State banks	Contact your state’s banking department
Online financial service providers	Contact the relevant providers with details about the fraudulent transaction and ask them to cancel or reverse the payment

Safeguard Your Assets As Much As Possible

Even if you only suspect you’ve fallen victim to check washing fraud, it’s important to keep your money safe before the fraudsters get to it.

If they haven’t cashed the check yet, quickly move your savings out of your checking or operating account into a more secure platform. This way, your assets will be kept safe while you report the fraud occurrence to the appropriate authorities.

One such security-first savings platform that helps with asset protection is FortKnox.