According to the FBI Elder Fraud Report, senior scams caused over $3.4 billion in losses last year, about an 11% increase from the previous year. Older Americans are, unfortunately, disproportionately impacted by scams and fraud. Scammers targeting seniors prey on this vulnerable cohort to make a quick buck. There are a wide variety of popular senior scams that have been around for a while such as grandparent scams, AI (artificial intelligence) scams, debit card scams, and medicare scams. And recently, my husband and I became victims of a relatively new type of scam, check washing, aimed at people who still write paper checks.
Why is check washing considered a senior scam? It’s because the people who still write paper checks are primarily those of us in our 50s and 60s. Many in this age group report writing a few checks each month. This method of monetary exchange is rarely used by younger people these days, if at all. Today’s digital landscape affects how we as a society handle money, and the need for physical checks is dwindling. I know that my children, age 30 and 33, have never written a check, or even sent a check from their bank account. Younger generations consider writing checks to be old-school and prefer the instant gratification of apps like Venmo, Zelle, or Apple Pay.
Check Washing Fraud Becoming a Growing Concern
Have you ever sent a check through the mail that the recipient said never arrived? When it happened to us, we didn’t think too much about it. As sometimes the mail is slow, we asked the recipient, a contractor who did some work for us, to give it another week. When the check still didn’t show up, we sent the $1200 we owed using the Venmo app and asked the recipient to rip up our check when and if he received it. We didn’t hear anything more, and though in retrospect we should have followed up and stopped payment on the check, we didn’t. Life was busy at the time and we forgot about it.
Almost one year later, while reviewing the checks online in our bank account, we noticed a check cashed for the $1200 amount we sent to the contractor. However, we didn’t recognize the company to whom the check was made out or the handwriting on that line. The name of the contractor had been removed and the new company name written in, The rest of the check was unchanged, including the date.
We called the fraud department at our bank who explained about check washing fraud, then immediately put a fraud alert in place and closed the account. One week later, they called to tell us a new check was written to the same fraudulent company using the routing and account numbers the scammers apparently took from our initial check. This check was for $8,000. Cashing the first check seemed to be a test to see if we noticed the name on the check was changed. Once the scammers cashed that check at their bank, they felt empowered to take more money from our account. Fortunately, with the account now closed, they were not able to get to our funds. In addition, our bank reimbursed us for the initial $1200.
What is Check Washing
Check washing, also known as check fraud or altered check scam, is increasing at an alarming rate. Here’s how it works. Mail snatchers steal your checks, sometimes right out of your mailbox, which is what we believe happened to us. The scammers erase the ink on the check with chemicals found in common household cleaning products, then reuse the check by rewriting it for themselves. Some scammers use copiers or scanners to print fake copies of a check once the name is erased so they can reuse it multiple times.
When you check your bank statement, you see that the check went through and the amount matches. You may not notice that the name on the “To” line on the check is different. It’s not unusual for the scammer to then write a new check to themselves for a larger amount using the routing and account numbers from the first check.
How to Protect Yourself from Check Washing Fraud
There are ways to protect yourself from check washing. The National Fraud Information Center recommends you consider the following:
Stop Payment
Stop payment on a check that the recipient did not receive.
Don’t Use Your Residential Mailbox for Checks
The red flag sticking up is an invitation to a thief. If you must leave outgoing mail in your box, do it immediately before the letter carrier comes, and don’t raise the red flag. Better yet, mail envelopes containing checks directly from the post office.
Secure Your Mailbox
Another option is to lock your mailbox; this will secure both incoming and outgoing mail.
Don’t Have New Checks Sent to Your Home
Pick up new books of checks at your local branch, rather than arranging to ship them to you at home.
Don’t Throw Canceled Checks in the Trash
Shred or burn your canceled checks. If you must save them, keep them in a secured area such as a wall safe or lock box.
Review Bank Statements Regularly
Monitor your bank account activity to detect fraudulent checks. Note that if you fail to report check fraud within 30 days of receiving your monthly statement, the bank is not obligated to reimburse your loss.
Change Your Pen
Use a gel pen with black ink when writing checks. Scammers can easily remove ink in a standard blue ballpoint pen with acetone, but black ink is more difficult. and ink in gel pens resists chemical stripping and contains pigments that permeate the fibers of the check itself.
Limit Check Use
Consider electronic payments; Here are some money transfer services to consider instead of writing checks.
Zelle: Focuses on sending and receiving money between US bank accounts directly. It’s a free service offered by many banks but limited to domestic transfers.
PayPal: A popular online payment platform that allows domestic and international money transfers, online purchases, and receiving payments. It has fees for certain transactions
Venmo: Owned by PayPal, Venmo is known for social payments between friends and family. It’s a convenient option for splitting bills or sending small amounts domestically but may not be suitable for business transactions.
Google Pay: A mobile payment service from Google that lets you make contactless payments in stores and send money to others using your phone. Limited to domestic transfers.
Apple Pay: Similar to Google Pay, Apple Pay is a mobile payment service from Apple for contactless payments and domestic money transfers between Apple users.
Xoom: Owned by PayPal, Xoom specializes in international money transfers with competitive rates and allows sending money to bank accounts or for cash pickup.
Western Union: Best for international money transfers or sending cash for pickup at a physical location. They have a large network of agent locations worldwide but their fees can be higher compared to other options.
Where to Report Check Washing Fraud and Other Senior Scams
There are several resources available to report senior scams, depending on the nature of the scam and your preferred method. It’s important to report fraud even if you didn’t suffer any financial losses. By reporting, you can help to track down scammers and prevent others from becoming victims.
National Elder Fraud Hotline
This free hotline (1-833-FRAUD-11 or 1-833-372-8311) is run by the U.S. Department of Justice and is a great starting point. They can assist and direct you to the appropriate reporting agency.
AARP Fraud Watch Network
AARP Fraud Watch NetworkTM is a free resource available to all. You don’t need to be an AARP member. AARP fraud specialists provide guidance for those targeted. Call the AARP fraud helpline at 877-908-3360, is free and available to anyone. They also offer online support sessions for further emotional support.
Federal Trade Commission (FTC)
You can report scams online HERE or by calling 1-877-FTC-HELP (1-877-382-4357). The FTC tracks fraud data and uses it for law enforcement and consumer education purposes.
Local Law Enforcement
If you suspect a crime was committed, such as theft or fraud, you should also report it to your local police department.
The Bottom Line
Senior scams target older adults through various tactics. Common cons involve impersonating tech support, offering fake prizes, or exploiting trust with romantic scams. Check washing is a specific fraud where scammers steal a check, remove the written information with chemicals, and rewrite it, often with a higher amount, payable to themselves. Fortunately, there are ways to protect yourself and your loved ones. Stay safe out there!
FAQs About Check Washing Fraud
Check washing fraud is a form of identity theft in which criminals alter the payee’s name and amount on a legitimate check to divert funds. Here are some commonly asked questions about this type of senior scam.
How do criminals wash checks?
Scammers use various methods to erase or alter the ink on a check, typically using chemicals or solvents to remove the original details. They then rewrite the check with their desired information.
What types of checks are targeted for washing?
Any checks with easily alterable ink, such as those written with ballpoint pens or certain types of printer ink, are vulnerable to washing. Scammers target personal checks, business checks, and official checks like cashier’s checks.
How can I prevent check washing fraud?
You can take several precautions, such as using gel-based pens that soak into the paper fibers, writing checks with indelible ink, and securely mailing outgoing checks. Additionally, monitoring your bank account regularly for unauthorized transactions can help detect fraud early.
What should I do if I suspect check washing fraud?
If you believe a check you wrote or received was tampered with, the first step is to contact your bank immediately to report the suspicious activity. They can guide you through the steps to protect your account and investigate the incident.
Are there any emerging technologies to prevent check washing?
Yes. Banks are continually working to develop and implement new security features, such as watermarks, holograms, and digital signatures, to make checks more resistant to tampering and fraud. In addition, advancements in electronic payment methods, like mobile banking and digital wallets, offer alternative secure options for transactions.
Leslie Farin is the Publisher and Founder of 50PlusToday. She is an experienced communications and marketing professional passionate about working with older adults and their families. She works with a team of writers to provide essential and cutting-edge information related to the 50Plus community.
