ARKANSAS, USA — The United States Postal Service and local banks have once again reported a rise in an old-fashioned crime— check fraud.
“What's interesting is what's old is new again. We're starting to see check washing comeback, where the bad guys are actually using social media to sell instructional videos on how to wash checks," said James Taylor, Senior Vice President of First Security Bancorp.
According to the Wall Street Journal, banks are dealing with an increase in check fraud after the theft of checks mailed through the USPS jumped to 680,000 last year, up from 350,000 in 2021.
Taylor offered one very simple tip for check writers to help keep them safe.
“If you're still writing checks by hand, the best thing to use is a black gel pen, gel ink pen, that black gel actually permeates deeper into the paper of the check and it's harder for the bad guys to use the chemicals to wash the ink away," Taylor explained.
If you're a business customer, Taylor said to go to your bank and talk to them about positive pay.
"That's a way that the bank and the issuing company have a way to talk back and forth to know which checks are good and which checks are not good,” he added.
USPS also released these tips to help customers take steps to protect their mail and even the letter carriers delivering it:
- You can significantly reduce the chance of being victimized by simply removing your mail from your mailbox every day.
- Deposit outgoing mail through a number of secure manners, including inside your local post office, at your place of business, or by handing it to a letter carrier.
- Sign up for informed delivery and get daily digest emails that preview your mail and packages scheduled to arrive soon.
- Become involved and engaged in your neighborhood via neighborhood watches and local social media groups to spread awareness and share information.
- Keep an eye out for your letter carrier. If you see something that looks suspicious, or you see someone following your carrier, call 911.
Taylor added that technology has been getting better at dealing with these types of crimes, with some companies even utilizing artificial intelligence to study patterns.
"So if the only checks that you write are to utility companies and for a credit card, all of a sudden, if you have a large check payable to someone that you've never written a check to before, that may be kicked out by the bank. You may get a phone call to say 'Hey, did you actually write this check?' So, technology is catching up with the bad guys, as it usually does," Taylor described.
If you are dealing with check fraud, Taylor advised you to make a call to your bank. Each case is different, however, and he said your bank will be able to advise you best.