Mail Theft-Related Check Fraud

Quick Read

• Fraudsters are stealing mailed checks from USPS facilities or during delivery to the intended recipient.
• Financial institutions are required to make check funds available to the depositor within a certain timeframe, which is a relatively short window.
• This allows criminals to deposit a compromised check and withdraw funds before the fraud is detected.

The Details 

• Fraudsters alter or prepare the checks to be deposited through various techniques such as “check washing” or “check cooking” or simply deposit the check with forged endorsements. 
• “Check washing” uses chemicals to alter the original payee or check amount. 
• “Check cooking” uses digital editing software and high-tech printers to produce multiple fake checks from a single stolen check image. Criminals will typically write checks for smaller amounts to stay under the radar, as they are not subject to the same level of scrutiny as larger checks.  

Check fraud can negatively impact businesses, consumers and government entities. 

• Disruptions to business activities and damage to reputation due to overdue or missed/delayed payments 
• Credit score impacts for late bill payments, account closures, stop payment fees, missed interest, compromise personal information and more. Note that fraud victims have protections and are often reimbursed for accrued fees, but refunds are often withheld until investigations are complete. 
• Funds intended for citizens are intercepted and altered or forged, resulting in government funds being dispersed incorrectly. It can be a time intensive process to investigate and reissue payments to the rightful recipients of intercepted checks.

Tips to Protect Your Mail

• Pick up your mail promptly after delivery. Do not leave mail in your mailbox overnight or for long periods of time.
• If you are heading out of town or unable to retrieve for more than a few days, submit a USPS Hold Mail™ request asking your local Post Office to hold your mail until you return.
• Sign up for Informed Delivery® at USPS.com to receive daily email notifications of incoming mail and packages.
• Contact the sender if you do not receive a check, credit card or other valuable mail you are expecting.
• Consider using security envelopes to conceal the contents of your mail.
• Use the letter slots inside your local Post Office to send mail. If using a blue USPS collection box, be sure to drop your mail as close to the posted pickup time as possible and before the last collection of the day.

Tips to Protect Your Checks

• Use pens with indelible black ink so it is more difficult for a criminal to wash your checks.
• Don't leave blank spaces in the payee or amount lines.
• Don't write personal details, such as your Social Security number, credit card information, driver's license number, or phone number on checks.
• Use mobile or online banking to access copies of your checks and ensure they are not altered. While logged in, review your bank activity and statements for errors.
• Consider using e-check, ACH automatic payments, and other electronic and/or mobile payments.
• Follow up with payees to make sure they received your check.
• Use check positive pay if available at financial institutions to help detect and stop fraudulent checks.
• Use checks with security features to limit the effectiveness of check washing (e.g. microprinting, holograms, heat-sensitive ink, watermarks, toner adhesion, chemically reactive paper, security screens, thermal thumbprints, void pantographs, ultraviolet overprinting, security padlock icon, and fraud warnings).

If You Believe You Are a Victim of Mail Theft-Related Check Fraud  

• Contact your bank immediately. 
• Consider opening a new account and closing out the compromised account to prevent future counterfeit checks being drawn off the account.
• File a report with your bank and request copies of all fraudulent checks. 
• Report the incident to the FBI Internet Crime Complaint Center (IC3), www.ic3.gov. 
• Report to your local police and the United States Postal Inspection Service at uspis.gov/report or 1-877-876-2455.