Don’t Let Scammers Cash in on Your Checks!
Despite reduced check usage, check fraud continues to be on the rise and impacts consumers across the United States.
Learn the common ways fraudsters can manipulate checks and how you can protect yourself from falling victim to check fraud.
What Is Check Fraud?
Check Fraud takes place when scammers use checks to obtain money from others’ accounts. A common form of check fraud occurs when fraudsters manipulate checks to be cashed or deposited, or when they send manipulated checks to others, hoping unsuspecting individuals will deposit them.
What are Some Ways Scammers Commit Check Fraud?
- Altering Checks
- Scammers can use rubbing alcohol or other tools to alter information on an existing check, such as the routing number or dollar amount. This is a strategy called check washing. They can even alter or forge signatures on checks to execute their plan.
- Counterfeit Checks
- Copies of inauthentic checks can be purchased or obtained by scammers. From there, scammers can alter fake checks to appear legitimate by adding bank information and other details in hopes of having fake checks be deposited or cashed.
- Check Theft
- Scammers can also obtain checks from other individuals or businesses and use them for fraud. They can even intercept checks in the mail.
Ways You Can Reduce Your Risk of Exposure to Check Fraud
If Possible, Use Digital Payments.
Making payments digitally can boost security and lower the risk of a check being intercepted by a fraudster in the mail. Tools like Bill Pay in Royal Banks of Missouri Online & Mobile Banking can help keep checks out of the wrong hands. You can schedule bill payments in your digital banking on your computer or your mobile device instead of taking the time to mail or deliver checks.
Use A Permanent Pen.
Look for a utensil that would make it difficult to wash out the ink when you write a check. Black permanent gel pens are the ideal option to help reduce the odds of check washing.
Monitor Your Accounts.
Check your account balance regularly in your online and mobile banking, and monitor activity closely so you know when any checks have cleared. If you notice different amounts for your check payments or any unfamiliar transactions appear in your account, contact your bank immediately.
Verify Unexpected Checks
If you receive unexpected or unfamiliar checks, verify them by contacting the person or business that sent them before cashing or depositing. Additionally, review all checks you receive for any inconsistencies and signs that the check could be inauthentic.
Secure Your Checks.
Always keep checks stored safely, perhaps in a locked file cabinet or safe. This will prevent scammers from attempting to steal your checks and using them to initiate fraud.
BONUS TIP FOR BUSINESSES: Consider Utilizing Positive Pay.
Positive Pay is a tool that can guard your organization from the risk of fraudulent checks. It allows you to monitor checks processed for payment against your account and reject unauthorized transactions before losses occur. Contact our Treasury Management specialists to explore how adopting Positive Pay could reduce your business’s exposure to check fraud.
What Should I Do if I Suspect Fraud on My Account?
If you believe you have fallen victim to a financial scam such as check fraud, please call (314) 212-1500 or visit a Royal Banks of Missouri branch near you immediately. A banker can help you manage your situation.
While check use has decreased in recent years, it is still critical to take measures to secure your payments and stay one step ahead of the scammers.
Visit our Security Corner for more tips to protect your money and personal information from exposure to financial fraud and scams.
