Money Smarts Blog
THE THREAT OF CHECK WASHING SCAMS
Apr 10, 2023 || Kristen Doonan, VP Risk Management
Imagine a world of fake IDs, forged checks and plenty of hijinks (not to mention, a post-Titanic Leonardo DiCaprio … sigh). This is the premise of Catch Me If You Can, a semi-biographical tale that follows charming con man Frank Abagnale Jr.’s rise to notoriety. As a teenager, he forged millions of dollars’ worth of bad checks … and although it makes for an entertaining movie, there’s a real-life version happening in our own community
The star of the show? Your mailbox.
That’s right, mail theft and check fraud is on the rise. So, if you’re still dropping your checks in the mail, it might be a good time to switch to online bill pay.
As VP of Risk Management, it’s literally my job to keep a watchful eye on the latest scams and monitor potential threats to members. Since the pandemic, we’ve seen an increase in postal crime. Yes, porch pirates stealing your Amazon Prime packages that you waited two whole days for is certainly inconvenient (even I had a few mysteriously disappear during the holidays). But even worse are the criminals who snatch checks right out of your mailbox, putting not just your money at risk … but your identity too.
What are the scammers after?
Mail thieves are typically on the prowl for personal, business and tax refund checks, not to mention other funds relating to government assistance programs. Here’s an example:
Let’s say you owe the cable company $50. You write the check, drop it in your mailbox and go on your merry way. But your not-so-friendly neighborhood fraudster sees your mailbox flag up, steals your check and “washes” it (no, I’m not talking about sending it through the spin cycle). Check washing involves techniques that erase and change payee names and dollar amounts, turning that $50 bill payment into a $5,000 fraudulent deposit.
In 2022, financial institutions filed more than 680,000 reports related to check fraud schemes targeting U.S. Mail – nearly double the number filed from the previous year. If you think it only happens in big cities, think again – we’ve seen it pick up steam in our own Quad Cities neighborhoods.
Go Electronic: Don’t become a victim of check fraud.
Send money electronically. Most financial institutions now offer an online banking option, like IHMVCU’s Online Branch, which lets you safely and securely organize bills and schedule payments. ACH (Automated Clearing House) transfers are another option for both individuals and small businesses to send and receive money online.
To initiate an ACH transfer, you’ll need to provide your account details and authorization to the organization collecting the payment (for example, if you’re paying a bill to a utility company, you’d contact the company to begin the process). Once authorized, transfers can take several business days and may involve a transaction fee, so be sure to check with your financial institution to find out more about their policies.
PRO TIP: MAIL HOLD Going on vacation this summer? Have your mail held at your local Post Office while you’re away. It’s super easy — just visit usps.com/holdmail to request hold mail service. Or, ask a trusted friend or neighbor to pick it up and keep until you return. You could also consider installing a doorbell camera with real-time monitoring tohelp minimize the temptation for mail and package thieves.
Think you've fallen victim to a scam?
Call IHMVCU at 309-793-6200 or 800-722-0333. We’ll assist you in protecting your IHMVCU accounts. If you use online or mobile banking, log in immediately and change your password. Contact your your local police or sheriff’s office and inquire about filing a report.
If you’ve disclosed sensitive or personal information, contact one of the three major credit bureaus and inquire about placing a fraud alert on your file. This’ll prevent criminals from opening accounts and using your information. Below are the phone numbers for the fraud divisions at each bureau:
- Experian 888-397-3742
- TransUnion 800-680-7289
- Equifax 800-525-6285
THE THREAT OF CHECK WASHING SCAMS
Apr 10, 2023 || Kristen Doonan, VP Risk Management
Imagine a world of fake IDs, forged checks and plenty of hijinks (not to mention, a post-Titanic Leonardo DiCaprio … sigh). This is the premise of Catch Me If You Can, a semi-biographical tale that follows charming con man Frank Abagnale Jr.’s rise to notoriety. As a teenager, he forged millions of dollars’ worth of bad checks … and although it makes for an entertaining movie, there’s a real-life version happening in our own community
The star of the show? Your mailbox.
That’s right, mail theft and check fraud is on the rise. So, if you’re still dropping your checks in the mail, it might be a good time to switch to online bill pay.
As VP of Risk Management, it’s literally my job to keep a watchful eye on the latest scams and monitor potential threats to members. Since the pandemic, we’ve seen an increase in postal crime. Yes, porch pirates stealing your Amazon Prime packages that you waited two whole days for is certainly inconvenient (even I had a few mysteriously disappear during the holidays). But even worse are the criminals who snatch checks right out of your mailbox, putting not just your money at risk … but your identity too.
What are the scammers after?
Mail thieves are typically on the prowl for personal, business and tax refund checks, not to mention other funds relating to government assistance programs. Here’s an example:
Let’s say you owe the cable company $50. You write the check, drop it in your mailbox and go on your merry way. But your not-so-friendly neighborhood fraudster sees your mailbox flag up, steals your check and “washes” it (no, I’m not talking about sending it through the spin cycle). Check washing involves techniques that erase and change payee names and dollar amounts, turning that $50 bill payment into a $5,000 fraudulent deposit.
In 2022, financial institutions filed more than 680,000 reports related to check fraud schemes targeting U.S. Mail – nearly double the number filed from the previous year. If you think it only happens in big cities, think again – we’ve seen it pick up steam in our own Quad Cities neighborhoods.
Go Electronic: Don’t become a victim of check fraud.
Send money electronically. Most financial institutions now offer an online banking option, like IHMVCU’s Online Branch, which lets you safely and securely organize bills and schedule payments. ACH (Automated Clearing House) transfers are another option for both individuals and small businesses to send and receive money online.
To initiate an ACH transfer, you’ll need to provide your account details and authorization to the organization collecting the payment (for example, if you’re paying a bill to a utility company, you’d contact the company to begin the process). Once authorized, transfers can take several business days and may involve a transaction fee, so be sure to check with your financial institution to find out more about their policies.
PRO TIP: MAIL HOLD Going on vacation this summer? Have your mail held at your local Post Office while you’re away. It’s super easy — just visit usps.com/holdmail to request hold mail service. Or, ask a trusted friend or neighbor to pick it up and keep until you return. You could also consider installing a doorbell camera with real-time monitoring tohelp minimize the temptation for mail and package thieves.
Think you've fallen victim to a scam?
Call IHMVCU at 309-793-6200 or 800-722-0333. We’ll assist you in protecting your IHMVCU accounts. If you use online or mobile banking, log in immediately and change your password. Contact your your local police or sheriff’s office and inquire about filing a report.
If you’ve disclosed sensitive or personal information, contact one of the three major credit bureaus and inquire about placing a fraud alert on your file. This’ll prevent criminals from opening accounts and using your information. Below are the phone numbers for the fraud divisions at each bureau:
- Experian 888-397-3742
- TransUnion 800-680-7289
- Equifax 800-525-6285
