Check fraud prevention

In an era of fast-moving technology and digital payments, checks may seem old-fashioned. But check fraud remains a serious concern for consumers and business owners alike. Understanding the basics of check fraud prevention could help you spot warning signs, protect your accounts and respond quickly if something doesn’t look right. 

What is check fraud?

Check fraud is the use of paper or digital checks to deceive a financial institution or individual into clearing a check. Some of the most common methods scammers use to commit fraud with a stolen check include:  

• Mail theft. Criminals may steal outgoing mail containing checks from mailboxes or USPS collection boxes. Stolen checks can then be altered, deposited fraudulently or used to create counterfeit checks. 
• Check washing.  A scammer may use common household chemicals to change the printed dollar amount and payee name on a check. 
• Forgery and identity theft. Checks typically include personal information, such as names and addresses. Criminals could use those details to steal someone's identity, forge an endorsement to deposit or cash a check or apply for credit products using the victim's personal information. 
• Counterfeit or duplicate checks. By using the information on the stolen check, fraudsters may further exploit the victim’s account information by creating additional counterfeit copies of the check. 

How to prevent check fraud

Fortunately, there are steps you can take to help protect yourself from check fraud. Here are some tips to keep in mind when sending money to others: 

• Pay digitally.  Reduce the number of checks you send and utilize card or digital payment methods instead. Consider using Zelle® when sending money to family or friends, for example.  
• Use your bank to send checks on your behalf. If you do have to pay for something via check, see if your bank offers a bill pay service. Using this service will mean that the payment information will be printed onto a check, which makes it more difficult for a scammer to remove the information compared to a hand-written personal check.  
• Consider the type of check-writing pen you use.  If you do write a check, make sure you're using a black gel pen. They have ink that’s more difficult to remove.   
• Use mailboxes that are secure. If you need to send any checks by mail, use the mailbox inside of a USPS facility rather than at a curbside USPS mailbox or your residential outgoing mail.   
• Keep your bank account information safe. Don’t share or post your bank account information anywhere publicly, and never share account information with anyone with whom you did not initiate the communication. Do not allow websites to save your routing/transit and account number information. 
• Set up account alerts. Many checking accounts allow you to set up alerts for checks, so you're notified as soon as they clear. Always follow up with the recipient if a mailed payment hasn't cleared within a few business days. 

With a little caution and know-how, you can avoid becoming the victim of a check fraud scam.  

Warning signs of fraudulent checks

Even if you're cautious, fraudsters could still alter a check. These are a few red flags that may indicate check fraud. 

• Altered payee: If a check you wrote clears with a payee you don't recognize, that's a strong signal something is wrong.   
• Altered dollar amount: Likewise, if a check you wrote for $50 clears for $500, it's a clear sign that someone tampered with the check. Always compare the amount on any check you write with the amounts that cleared.   
• Unusual account activity: Unexpected withdrawals from your account could indicate someone got access to one of your checks. Setting up account alerts is one of the simplest ways to stay informed, since you'll be notified of activity as it happens.   
• Duplicate check numbers: Duplicate check numbers can signal that someone created a counterfeit copy of one of your checks. Using the information on a stolen check, a fraudster may produce additional copies and try to cash them. If you see the same check number clearing more than once, or checks clearing out of sequence, treat it as a red flag.  

What to do if you suspect check fraud

If you think you've spotted signs of check fraud, acting quickly is essential. Here's what you should do:

• Contact your bank immediately: Reach out to your bank's customer service or fraud department as soon as possible. Let them know about the suspicious activity so they can review your account and take steps to protect your funds.   
• Place a hold or stop payment: If the fraudulent check hasn’t cleared yet, ask your bank to place a stop payment on it to prevent any further damage.   
• Review your account for additional issues: Look through your recent transactions to check for any other unusual or unauthorized activity.   
• File a fraud report: Your bank may ask you to complete a formal fraud report or affidavit to help with their investigation.   
• Monitor your account closely: Keep a close eye on your account after reporting the issue to ensure no further problems arise. Set up account alerts so you’re notified of any new transactions immediately.  
• Report mail theft if applicable: If you suspect the fraud is linked to stolen mailed checks, report the theft to your local post office or the United States Postal Inspection Service.    

Acting fast can help minimize the impact of check fraud. If you need to report check fraud on a U.S. Bank account, call the Fraud Liaison Center at 877-595-6256 from 8 a.m. to 9 p.m. CT, Sunday through Saturday. 

Common questions about check fraud prevention

How does check fraud protection work?

Many personal checking accounts include fraud protection tools and support, but check fraud protection isn’t a substitute for careful account monitoring. If you notice a check you don’t recognize, a changed payee or an altered dollar amount, contact your bank right away.

Is fraud protection on checks worth it?

Yes. If your checking account includes fraud protection, you'll want to take time to understand how it works while also implementing related fraud prevention tools, such as account alerts and secure bill pay. 

How can I prevent check washing?

The first step to reducing your risk of check washing is to protect your mail. Take checks you need to mail directly to the post office or mail it from a collection box at work. If you go on vacation, consider pausing your mail or having it rerouted. You might also consider paying your bills online and depositing checks remotely by phone. 

Make check fraud prevention part of your routine

Check fraud protection starts with small, consistent habits. By choosing secure payment methods, monitoring your account activity and acting quickly when something looks suspicious, you can help protect your money and respond with more confidence. 

Table of contents