Check scams are rising, and fraudsters are getting more sophisticated in their tactics. Despite the growing shift to digital payments, billions of dollars in checks are still written each year. Checks remain a prime target for criminals due to their paper-based nature and the time it takes to process them. So, who’s most at risk for check fraud, and how can you protect yourself? Let’s break it down so you can stay one step ahead of scammers.
Who’s Most at Risk for Check Scams?
While anyone can fall victim to check fraud, certain groups are more vulnerable than others:
- Senior Citizens – Older adults often rely on checks for payments and may be less familiar with current credit union and banking security measures.
- Small Business Owners – Businesses frequently issue and receive checks, making them attractive targets for fraudsters.
- Job Seekers – Scammers pose as employers offering fake jobs and send fraudulent checks as part of a payment scheme.
- Online Sellers – Individuals selling goods online may receive counterfeit checks from buyers who disappear after the check bounces.
- Recent Disaster Victims – In the aftermath of natural disasters or personal crises, victims may receive fraudulent checks in the guise of relief funds or charitable donations.
Types of Check Fraud You Need to Know
Fraudsters use several tactics to manipulate and exploit checks. Here are the most common schemes:
- Check Washing – Criminals steal checks and use chemicals to erase details before rewriting them to steal money.
- Counterfeit Checks – Using advanced printing technology, scammers create fake checks that look legitimate and use them to steal your money.
- Check Alteration – A legitimate check is intercepted and modified to change the recipient’s name or payment amount.
- Stolen Checks – Fraudsters steal personal or business checks from mailboxes, forging signatures to cash them. The FBI and USPIS warned that check fraud is on the rise, with a significant volume enabled through mail theft.
- Overpayment Scams – A scammer “accidentally” sends a check for more than the agreed amount and asks for the excess to be refunded before you see the check bounce.
How to Identify a Check Scam
Recognizing the warning signs of a check scam can save you from financial loss. Be on the lookout for:
- Unexpected Checks – If you receive a check from an unknown source, be skeptical.
- Pressure to Act Quickly – Scammers often urge you to deposit a check and send money before it clears.
- Suspicious Overpayments – If someone overpays for an item and asks for a refund, it’s likely a scam.
- Unusual Check Features – Look for misspellings, low-quality printing, or inconsistencies in fonts and logos.
Steps to Protect Yourself from Check Fraud
Being proactive is the best way to prevent becoming a victim. Follow these steps to safeguard your finances:
- Use Digital Payments – Opt for electronic transfers or direct deposits instead of checks whenever possible. Choice One’s Virtual Branch Online and Mobile Banking, which feature online bill pay and mobile deposits, is a good line of defense.
- Monitor Your Accounts Regularly – Set up alerts and review your credit union and financial statements for unauthorized transactions.
- Verify Before Depositing – Contact the issuing credit union or bank to confirm the legitimacy of a check before cashing or depositing it.
- Secure Your Mail – Use a locked mailbox and avoid leaving outgoing checks in unsecured locations.
- Sign Up for Informed Delivery at USPS – By doing so, you will receive daily email notifications of incoming mail and packages.
- Pick Up Mail Promptly – Avoid leaving your mail in your mailbox overnight or for long periods.
- Shred Sensitive Documents – Properly dispose of old checks and financial statements to prevent identity theft.
- Report Suspicious Activity Immediately – If you suspect check fraud, notify your bank and local authorities without delay.
- Use Pens with Indelible Ink – This will make it more difficult for a thief to wash or change your check.
- Don’t Write Personal Details on a Check – Refrain from providing private information, such as a driver’s license or social security number, on a check, as you may be handing a thief enough to commit identity fraud.
Stay One Step Ahead of Check Fraud
Check fraud is evolving, but you can reduce your risk with awareness and proactive security measures. Choice One Credit Union is here to help you protect your finances with secure banking solutions and expert guidance. If you have concerns about check fraud or need assistance, contact us today to learn more about how we can help safeguard your accounts.
Read more helpful articles like this in our blog, “Don’t Get Duped: 10 Tips for Avoiding Tax Scams in 2025.”