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Be on the Lookout for Check Washing Scams
“I mailed my check to the gas company two months ago to pay the $45 bill. Today, the gas company sent me a bill stating I hadn’t paid last month’s bill. So, they charged me again for last month’s bill plus this month’s bill, plus a late payment fee of $25. I just checked my bank statement, and I noticed that somehow the $45 check I had written was altered to read $4,500 and someone cashed it.”
Check Washing is on the Rise
The DC Department of Insurance, Securities and Banking (DISB) encourages residents to be on the lookout for check washing scams. Check washing scams like this are on the rise, with the U.S. Postal Inspection Service reporting a 161% increase nationwide in recent years.
What Is Check Washing?
Criminals steal checks from mailboxes or postal facilities, erase the original details using household chemicals, and replace them with their own name and a higher amount. They then cash or deposit the counterfeit checks, leaving victims with significant financial losses.
How to Protect Yourself
- Go Digital: Set up automatic payments through your bank to eliminate the need for mailing checks.
- Use Security Envelopes: Avoid using envelopes that say “payment enclosed.” Instead, opt for opaque security envelopes.
- Write Smart: Gel pens are harder to erase, but counterfeiters are increasingly sophisticated—consider minimizing check use altogether.
- Stay Vigilant: Check your bank statements daily for unauthorized transactions and report them immediately.
- Secure Your Mail: Never leave outgoing mail in your outdoor mailbox.
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If you suspect check fraud:
- Contact your bank immediately.
- Report the incident to the DISB Enforcement and Consumer Protection Division at 202.727.8000.
- Notify the DC Metropolitan Police Department at 202.727.4159 and the U.S. Postal Inspection Service at 877.876.2455.
Take steps to safeguard your finances and help protect yourself from becoming a victim of check washing.
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DISB Mission
Our mission is three-fold: (1) cultivate a regulatory environment that protects consumers and attracts and retains financial services firms to the District; (2) empower and educate residents on financial matters; and (3) provide financing for District small businesses. |
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