In today's digital age, it's surprising that an old-school crime like check fraud is experiencing a resurgence. Astonishingly, billions of dollars were stolen from Americans in 2023 through this method. This article outlines how these scams work and provides practical steps to protect your finances.
How Check Fraud Works in the Digital Age
Criminals are leveraging online platforms like Telegram, Facebook, and even TikTok to coordinate their efforts, sharing techniques and selling tools that facilitate check fraud. These tools can include universal postal keys or even books of blank checks purchased on the Dark Web. Many thieves simply steal checks directly from mailboxes. Using common household chemicals, they erase the ink and rewrite the checks for their own gain. They then deposit these altered checks via ATMs or mobile banking apps, often withdrawing the money in smaller amounts to avoid raising red flags.
Image: Old-fashioned check fraud is making a comeback. (Fox News)
Banks Respond to Rising Check Fraud
Financial institutions are tightening their security measures in response to this increase in check fraud. This includes stricter deposit policies and longer hold times on deposited funds. While these measures can be inconvenient, they are necessary to verify deposits and prevent fraud. A recent incident involving a TikTok glitch that exploited J.P. Morgan's instant deposit feature highlights the ongoing battle against these scams.
Five Essential Steps to Protect Yourself
- Secure Your Mailbox: Invest in a USPS-approved locking mailbox to prevent easy access for thieves.
- Monitor Your Accounts: Regularly check your bank statements for suspicious activity and set up alerts for withdrawals exceeding a certain amount.
- Embrace Digital Payments: Use secure payment apps like Zelle, Venmo, or PayPal for recurring bills and one-time payments. For sensitive payments, consider making deposits directly at the post office.
- Track Your Mail: Sign up for USPS Informed Delivery, a free service that allows you to preview and track incoming mail, alerting you to potential missing items.
- Use Fraud-Resistant Pens: Write checks with pens designed to prevent ink alteration.
Image: Protecting yourself from check fraud. (Fox News)
In the event of suspected fraud or missing checks, report the incident immediately to your bank, the USPS, and local law enforcement. Obtain a case number to track your claim's progress.
