In today’s digital world, it’s hard to imagine that scammers are using checks to steal hundreds of thousands of dollars each year. However, it’s true! In recent years, there’s been an increase in reported check fraud, upwards of 680,000 cases per year. And that’s just the reported cases.

Why is check fraud increasing? One reason is that it’s a relatively low-tech, easy way to make some money. Around 3.4 billion checks circulated in 2022. While that number goes down bit-by-bit every year, that’s still a large pool of potential victims for scammers.

We want to help you avoid becoming the next check fraud victim. Keep reading to learn more about how scammers commit this type of fraud and how you can avoid it.

Option #1: Stolen Checks

One of the most obvious ways scammers commit check fraud is by literally stealing checks, whether that’s from mailboxes or the blue USPS boxes posted around neighborhoods and businesses. Scammers will watch areas to see which have heavy traffic and then choose boxes that are in more isolated, quiet areas. Some scammers are even robbing postal workers directly to get the master key that opens those blue mailboxes.

Once the scammers have stolen the checks, they will ‘wash’ them with chemicals or certain computer programs to change the payee and dollar amount for their own purposes.

Option #2: Counterfeit Checks

With all the digital advancements available to criminals today, and with how easy it is to steal actual checks, criminals can easily create counterfeit checks for their own purposes. Scammers will often use a real account number to create the checks but will then deposit them under a fake identity.

To do this, they will use online platforms like Telegram, WhatsApp, and other alternative sites to find people to hire. These individuals will deposit the counterfeit checks using fake identities.

Option #3: Mystery Shopper

Sometimes a scammer will contact a victim directly, posing as a company that hires ‘mystery shoppers’. They aren’t with a real company, but they will make it seem like they are, encouraging you to join their team for the chance to earn lots of money.

The scammer may send you a check in the mail to buy products, telling you to deposit it and then wire some money back for taxes, fees, or something else. This is a scam, and no funds will end up being deposited to your account. You will also lose whatever you sent them in taxes/fees/etc. as it will come directly from your account instead of their counterfeit check.

Option #4: Overpayments

Overpayment is a very common form of check fraud. If you are selling something online, scammers will often target you, sending you a check for the item you’re selling but for much more than the asking price. Then they’ll ask you to send some back because they wrote the wrong amount. This is a scam.

Once you send some money back, it works much like the mystery shopper scam, where you will be out the money you sent.

How Can I Avoid Check Fraud?

Now that you know all the signs of potential check fraud, it’s time to learn how to avoid becoming a victim.

  1. If you must write a check, make sure you are reviewing all of your bank activity and cashed checks to make sure they’re all accounted for.
  2. Once you have written a check to someone, follow up with that person to make sure they received it or give it to them directly if you can.
  3. Use only permanent black ink when writing your checks.
  4. If you have to put a check in the mail, only mail it directly from the post office, not one of the blue boxes outside.
  5. Consider alternative payments when you can, like ACH, auto payments, or electronic/mobile payments. An Availa banker would be happy to help you set these up!
  6. Never use money from a check you received to send gift cards, money orders, cryptocurrency, or wires, especially if you don’t know the receiver personally.
  7. Don’t accept a check for more than the selling price of an item, no matter how genuine or honest they may seem.

If you believe you have been a victim of check fraud, report it immediately to the United States Postal Inspection Service (https://www.uspis.gov/report or call 1-877-876-2455), your local police department, and your financial institution.

By keeping up to date on recent scam tactics and keeping an open line of communication with your local banker, you can stop fraud before it starts. Never be afraid to ask someone in a position of authority for help if you are confused or unsure if something is a scam. Our phone lines and branches are always open to you!