Writing a check might seem like an old-fashioned way to pay a bill, but check fraud is still a very real threat. Criminals can steal checks from mailboxes, alter important information and attempt to cash or deposit them before the account holder realizes anything is wrong.
In one recent case, checks that had been mailed for everyday bills were allegedly stolen before reaching their intended recipients. The checks were altered, including changes to the payee and dollar amounts, and then cashed. The fraud was discovered after unauthorized activity appeared on the account.
But the story didn’t end there.
Later that same day, the person suspected of altering the checks returned to a Great Basin branch and attempted to cash another fraudulent check. Alert employees recognized the warning signs, contacted law enforcement and helped prevent another fraudulent transaction.
How Check Fraud Happens
Check fraud can happen in several ways. A criminal may steal a check from a mailbox or other location and alter information on it before attempting to use it.
Common alterations can include:
- Changing the payee so the check is made out to someone else
- Increasing the dollar amount
- Changing or manipulating other information on the check
- Using information from a stolen check to create counterfeit checks
Because checks contain sensitive banking information, a stolen check can potentially provide criminals with more than just access to a single payment.
How to Best Protect Yourself
There are several simple steps you can take to reduce your risk of check fraud.
Be thoughtful about how you mail checks. Avoid leaving outgoing checks in an unsecured mailbox for extended periods. When possible, consider taking them directly to a post office or using a secure mail collection location.
Monitor your accounts. Regularly review your transactions and look for checks or withdrawals you don’t recognize. Catching suspicious activity quickly can make a big difference.
Keep track of the checks you write. Record the check number, amount and recipient so you can compare your records with your account activity.
Don’t leave blank spaces. When writing a check, fill in the payee and amount completely to make alterations more difficult.
Report anything suspicious. If a check appears to have been altered or you notice unauthorized activity, contact your financial institution as soon as possible.
Fraud doesn’t always involve sophisticated technology or complicated schemes. Sometimes, it starts with something as simple as a check being taken from a mailbox.
Taking a few extra precautions, monitoring your accounts and knowing what to look for can help keep your money, and your personal financial information, out of the wrong hands.