In recent years, criminals have begun to frequently target the U.S. Mail service and USPS mail carriers for a specific reason – to commit check fraud. In fact, the FBI found that losses from check fraud amount to $18 billion dollars each year. That’s equal to nearly 500 million checks!
As your fraud-fighting bank, FFB is here to help you understand what happens during mail theft-related check fraud, teach you some common prevention techniques, and provide resources where you can report this crime.
How do criminals commit check-fraud with stolen mail?
When a fraudster or organized crime group steals your check from the mail, they can use a chemical process called “washing” to alter the check’s information. When a check’s payee information is washed it can then be replaced with the criminal’s information, a false identity, or a business account that they control. Similarly, washing can allow criminals to change a check’s dollar amount. It only takes a few added zeroes to increase a check’s amount by hundreds, even thousands of dollars!
How can I prevent an initial mail theft?
According to the United States Postal Inspection Service (USPIS), these are the most effective ways to stop mail thieves:
- Promptly Pick Up Your Mail
The most important thing to do is pick up your mail right when it arrives. By doing so, letters and packages are not left out for an extended length of time, thereby reducing the window of opportunity for thieves to strike.
- Arrange a Pickup
If you know that you won’t be home in time to receive a package, it is best to make other arrangements. This can include asking a trusted individual to pick up the package for you or requesting that your local Post Office hold the package until you can pick it up yourself. If you are shipping a package, you can also request a hold-for pickup for the recipient, allowing him or her to collect the package directly from his or her local Post Office - Request a Signature Confirmation
To ensure that a letter or package is safely delivered to the correct person, you can request a signature confirmation. This may be especially useful if the item being sent is highly valuable.
- Don’t Ignore Overdue Mail
If you have not received a piece of valuable mail, such as a check, credit or debit card, or another important package, be sure to contact the sender as soon as possible to determine its status or whether a thief may have been involved.
- File a Change of Address when Moving
When moving, be sure to file a change of address with the Postal Service and your financial institutions to ensure that your mail is delivered to the correct location.
What can I do to spot and prevent check fraud?
In addition to preventing thieves from getting a hold of mailed checks using the tips above, you can also do two things to spot and prevent potential check fraud. First, be sure to monitor your account activity as frequently as possible. This way you will be able to spot suspicious transactions more easily and report them faster. Secondly, you may want to consider using an alternative payment method such as ACH or wires instead of checks for long-distance transactions.
I’m a business owner. How can I prevent fraud when cashing checks for my customers?
When cashing checks for customers, be wary of signs that the check may have been washed. For example, a common tell-tale sign of an altered check is faded handwriting underneath darker handwriting. This detail shows that the original handwriting may have been overwritten.
Another sign to look out for is suspicious activity from customers themselves. If a customer is attempting to cash one or more large checks in-person and they provide a suspicious explanation when questioned, then this could be an indication that the person is a money mule.
Lastly, please note that you should never cash checks that are payable to a business.
What steps should I take to report mail theft-related check fraud?
If you find that you’ve become the victim of mail theft-related check fraud, you can report the incident to USPIS by phone, +1(877)-876-2455, or online. Additionally, you can notify FFB immediately if you spot any suspicious activity on your account by calling (559) 439-0200, or our after-hours hotline, (844) 202-5333.
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