Security Corner Blog

Check fraud encompasses any illegal use of paper or digital checks, including writing bad checks, stealing, altering, or forging checks. Counterfeit checks often mimic legitimate financial institutions, making them challenging to distinguish. Stolen checks or those created with stolen account information contribute to the growing threat.

Types of Check Fraud

Several types of check fraud include, but are not limited to:

• Paper hanging: This means intentionally writing a bad check and taking advantage of the fact that it takes time for checks to clear—what's known as the "float." The check writer might receive the products or services they pay for with the check, and the recipient doesn't realize that the check will bounce until it's too late.
• Check kiting: There are several forms of check kiting, but they all involve writing bad checks and using multiple accounts. In some situations, the person might write a bad check from Bank A and then temporarily cover that amount by writing a bad check from Bank B and depositing it into Bank A. The kiting could continue until the person has enough real money to cover the amount. Or, criminals might write multiple bad checks and deposit them or use them to make credit card payments before "busting out" and withdrawing cash or using the card.
• Check washing: Criminals might steal a check from a USPS box, carrier or your mailbox and then wash the check with chemicals to keep the signature and erase the amount and payee?the recipient of the check. They then write in a new amount and address the check to themselves, an accomplice or a fraudulent identity they created and deposit the check into an account they control.
• Check cooking: Check cooking is similar to check washing, except the criminals scan the check and use software to alter it before printing a counterfeit check. Criminals might use it to get around some security measures that prevent check washing.
• Check theft and forgery: Rather than altering a stolen check, criminals might steal or print blank checks and then forge a signature.

Protect Yourself from Check Fraud

Here are some steps you can take to reduce your risk:

• Practice good check writing habits. If you must write a check, use permanent ink, so it’s harder to wash. Don’t let there be any blank spaces in front of the payment amount. And never write a blank check, no matter how much you trust the person you’re giving it to.
• Mail checks at the post office. Ideally, you’d drop your sensitive mail off at the post office. If that’s not practical, put it in a blue mailbox before the last day’s pickup, so it’s not vulnerable overnight. Also, avoid putting up the flag on your mailbox and leaving checks in there for the mail carrier to pick up – that’s an easy one for thieves.
• Check your mail daily. Try to regularly check your mail to make sure no one steals a check or other mail from your box. You can use the free USPS Informed Delivery to get emails with images of your mail for the day.
• Hold your mail when you're away. You can also ask the USPS for a mail hold if you're going to be away for under 30 days.
• Keep your account information safe. Don’t share your account information with anyone with whom you did not initiate the communication. Do not allow websites to save your routing/transit and account number information. 
• Consider safer payment methods. Credit cards offer better payment security protections. If you do have to pay for something via check, use bill pay within online banking. Using this service will mean that the payment information will be printed onto a check, which makes it more difficult for a scammer to remove the information compared to a hand-written personal check.
• Monitor your account activity through online or mobile banking. If you spot something suspicious report it immediately. You should also set up custom alerts that notify you about any account activity, such as large withdrawals, low balances, or unusual transactions. If you do issue a check, track online and make sure it gets deposited. If a check hasn’t been deposited for a while, ask about it. If it wasn’t received, you can stop the check.

• Learn to spot a fake check. Any discrepancies or changes on a check indicate it may have been tampered with. Genuine bank checks are printed on high-quality paper and often include security features like watermarks and microprinting. Missing security features, low-quality paper, inconsistent fonts, and other mismatched physical characteristics can be a tip-off that something is wrong.

Report Fraud

If you suspect you are the victim of check fraud or notice any unauthorized transactions related to your USSFCU account(s), contact us immediately. You should also report to your local law enforcement, the Federal Trade Commission, the U.S. Postal Inspection Service and your state Attorney General.

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