“`html

Understanding and Preventing Check Washing Fraud

Check washing fraud is an old crime that has seen a recent resurgence, making it crucial to reconsider how and when you send checks. The concept is straightforward: a thief steals a filled-out check, erases everything but the signature, and then makes the check out to themselves. This theft and forgery can drain thousands of dollars from your account, and it might take months to recover your money. However, there are steps you can take to protect yourself.

What Is Check Washing Fraud?

Check washing is part of a broader scheme used by criminals to steal money. Here’s how it typically works:

• Stealing Checks: Criminals steal checks from the mail, whether from your mailbox or blue U.S. Postal Service collection boxes. These thieves can be individuals or part of organized crime groups.
• Washing Checks: Thieves use chemicals to remove the payee information and amount from the check, keeping the rest of the check’s information and the signature intact.
• Rewriting Checks: Once the check is washed and dried, criminals can write in any name and amount they want, potentially turning a $50 check into a $5,000 check.
• Depositing Checks: The criminals then deposit the check at a bank, ATM, or check cashing store, often using accounts opened with fake identities or recruiting someone to deposit the check for them.
• Withdrawing Funds: Once the check clears, the criminals quickly withdraw the cash or transfer the money to an account they control.

Sometimes, different criminals handle different parts of the process. For example, some might focus on stealing and washing checks, then sell the washed checks on the dark web, while others focus on buying and depositing them.

How to Avoid Check Washing Fraud

If you’re concerned about check washing fraud, here are several steps you can take:

• Use Electronic Payments: Avoid using checks by signing up for online bill pay services through your bank or credit union, or use your credit or debit card to pay bills online. Direct bank transfers or peer-to-peer payment apps are also good options.
• Use a Black Gel Pen: When writing checks, use a gel pen with ink that’s harder to wash off, such as Uni-Ball pens with Super Ink.
• Drop Checks at the Post Office: Minimize the risk of theft by mailing checks at the post office rather than leaving them in a blue USPS box. If mailing from home, avoid raising the flag on your mailbox.
• Retrieve Mail Daily: Check your mailbox frequently to reduce the chance of theft. You can also sign up for Informed Delivery from the USPS to get an email with images of your incoming mail.
• Request a Mail Hold When Traveling: If you’re out of town, request a USPS mail hold to keep your mail safe.
• Monitor Your Checking Account: Regularly review your checking account for unusual or unexpected withdrawals.

Additionally, warn family members and friends who regularly send checks about the dangers of mail theft and the steps they can take to avoid check washing fraud.

What to Do if Your Money Is Stolen

If you suspect that someone has stolen one of your checks or your checkbook, contact your bank immediately. The bank may be able to put a hold on the check to prevent its use. If a forged check has already been deposited, report the fraud to your bank and file a police report. Banks generally have to reimburse customers for forged checks, but disputes can sometimes take months to resolve.

To escalate the situation, you can reach out to the bank’s regulator. Use the search tool at HelpWithMyBank.gov for national banks and find the regulators for credit unions and state-chartered banks.

Monitor Your Credit for Identity Theft

Check thieves might also use information from your mail to steal your identity. Regularly check your credit or use a credit monitoring service with free alerts, like the one from Experian, to quickly detect if someone tries to open a credit account using your information. Identity theft protection services can also offer financial and logistical help with identity restoration.

For any mortgage-related needs, feel free to call O1ne Mortgage at 213-732-3074. We’re here to help you with confidence and expertise.

“`