Protect Yourself from Check Fraud: What You Need to Know

Check fraud is on the rise, and it’s impacting individuals and businesses across the country. At Security First Bank, we are committed to helping you understand the risks and take proactive steps to protect your financial well-being. In this post, we’ll explain what check fraud is, how it happens, and most importantly, how you can prevent it.

What Is Check Fraud?

Check fraud involves the illegal use of paper checks to obtain money. Criminals may steal, forge, or counterfeit checks to deceive financial institutions and access funds fraudulently. Even in today’s digital world, checks remain a common method of payment, and unfortunately, a common target for fraud.

Types of Check Fraud

Understanding the different ways check fraud can occur is the first step toward prevention. Here are the most common types:

1. Stolen Checks – Thieves may steal checks from residential mailboxes, business offices, or even outgoing mail. Once obtained, they may attempt to alter or cash them.

2. Check Washing – This method involves using household chemicals to remove ink from a legitimate check. The criminal then rewrites the check with a new payee and a higher amount, making it appear valid.

3. Counterfeit Checks – Sophisticated technology allows criminals to create realistic-looking fake checks that mimic those from legitimate businesses or financial institutions.

4. Altered Checks – Fraudsters may intercept a check and change details such as the payee name or dollar amount before trying to deposit or cash it.

5. Mobile Deposit Fraud – Some fraud schemes involve depositing the same check into multiple accounts using mobile apps before the check clears or is flagged as fraudulent.

Warning Signs to Watch For

Be alert to these red flags that may indicate you’ve become a victim of check fraud:

• Unexpected overdrafts or missing funds.
• Notifications from your bank about suspicious activity.
• Checks missing from your checkbook or mail.
• Returned checks that you didn’t issue.

How to Prevent Check Fraud

Taking proactive steps can dramatically reduce your risk of check fraud. Here are some best practices to follow:

✔️ Use Permanent Ink Write checks with a black gel pen, which makes it harder for criminals to wash the ink off.

✔️ Mail Securely Never leave outgoing checks in an unsecured mailbox. Use a USPS drop box or hand mail directly to a postal carrier.

✔️ Monitor Accounts Regularly Review your account statements and transactions frequently. The sooner you catch suspicious activity, the better your chances of resolving it quickly.

✔️ Opt for Electronic Payments Whenever possible, use online bill pay or electronic transfers to reduce your reliance on paper checks.

✔️ Safeguard Your Checkbook Keep checks in a secure location and report lost or stolen checks immediately.

✔️ Shred Old Checks Dispose of canceled or unused checks with a cross-cut shredder to prevent dumpster divers from accessing sensitive information.

What to Do if You’re a Victim

If you suspect you’ve been targeted by check fraud:

1. Contact Security First Bank immediately. We will place alerts on your account and guide you through the necessary steps.
2. File a police report.
3. Notify the US Postal Inspection Service if mail theft is involved.
4. Monitor your credit for any unusual activity that might suggest broader identity theft.

Stay Informed and Protected

Check fraud is a serious threat, but with awareness and action, you can protect your finances and your identity. At Security First Bank, we’re here to help you stay one step ahead of fraudsters.