What Is Check Washing? How to Protect Yourself and Your Money

Imagine this: You fill out a check for your electric bill, just like you do every month, and pop it in the mail. But weeks later, you discover the check was altered and cashed for hundreds or even thousands of dollars more than you intended.

That’s the reality of a type of fraud known as check washing, a growing form of financial crime in which criminals steal checks and use chemicals to remove or alter the information written on them. Once the check has been “washed,” fraudsters can rewrite the payee name, the amount, or both before attempting to cash or deposit it.

While electronic payments have become increasingly common, paper checks remain a target for criminals because they contain valuable information, including account and routing numbers.

How does check washing work?

Check washing often begins with mail theft. A criminal may steal checks from residential mailboxes, outgoing mail slots, or business mailrooms.

Once they have the check, the fraudster uses chemicals to remove ink while preserving the paper. They then rewrite the payment information and attempt to deposit or cash the altered check.

Here’s an example:

Original check

• Payee: City Utilities
• Amount: $85

Altered check

• Payee: Fraudster’s Name
• Amount: $850

The funds may be withdrawn before the fraud is discovered and the account holder realizes there’s a problem.

Warning signs of check washing fraud

Because fraudsters may alter only part of a check, victims often don’t discover the crime immediately.

Watch for these warning signs:

• Missing checks that never reach their destination
• Unexpected account withdrawals
• Checks clearing for different amounts than you authorized
• Unknown payee names in your transaction history
• Notifications regarding returned or disputed payments
• Unusual activity in your checking account

Regularly reviewing your account activity can help you identify suspicious transactions quickly.

Why paper checks are especially vulnerable to fraud

Although checks remain a useful payment method, mailing payments comes with risks. A paper check typically includes:

• Your name and address
• Bank routing number
• Checking account number
• Signature

If a criminal gains access to this information, they may attempt additional fraud schemes beyond a single altered check.

For this reason, credit unions, banks, and other financial institutions generally encourage members to take advantage of secure digital payment options whenever possible.

How to protect yourself from check washing fraud

The good news is that a few simple habits can significantly reduce your risk of becoming a victim of check washing. Here are ways to help protect yourself.

Use digital payment options when available

One of the best ways to avoid check washing is to avoid mailing checks altogether. Instead, consider:

• Online bill pay
• Electronic transfers
• Secure payment portals
• Mobile payment platforms

Digital payments reduce the opportunity for criminals to intercept and alter paper checks.

Use mobile deposit

If you’re receiving checks, mobile deposit allows you to deposit them securely from your smartphone instead of transporting them to a branch or ATM.

Avoid leaving outgoing mail in a residential mailbox

If you must mail a check:

• Drop it off inside the post office when possible
• Use secure collection boxes
• Avoid leaving outgoing mail overnight

Use permanent black gel ink

Many fraud experts recommend using black gel ink because it’s generally more difficult to remove than some traditional pen inks.

Monitor your accounts regularly

Within Digital Banking, set up:

• Transaction alerts
• Low-balance alerts
• Fraud notifications

The sooner you notice suspicious activity, the sooner you can act.

What to do if you suspect check fraud

If you believe one of your checks has been altered, act quickly.

1. Contact your financial institution immediately. Immediately report suspicious or unexpected account activity, including:
   • Unauthorized transactions
   • Missing checks
   • Altered check amounts
   • Suspicious account activity
2. Review recent transactions. Look at your accounts for:
   • Unrecognized withdrawals
   • Unusual deposits
   • Checks clearing for incorrect amounts
3. Monitor your accounts closely. Continue reviewing activity over the following weeks to ensure no additional fraudulent transactions occur.
4. File reports when appropriate. Depending on the situation, your financial institution may recommend reporting the theft to local law enforcement or postal authorities.

Protect your finances

Check washing is a reminder that criminals continue to look for ways to exploit traditional payment methods. Understanding how these scams work is the first step toward protecting yourself.

Fortunately, technology has made paying bills easier and more secure than ever. Whenever possible, consider using secure electronic payment options like Digital Banking instead of mailing checks. Monitor your accounts regularly and contact Connexus immediately if you notice any unexpected or suspicious account activity.

We’re committed to helping our members keep their accounts safe and secure. If you have questions about fraud prevention tools, online bill pay, or account monitoring services, we’re here to help.