Check fraud continues to be something consumers should keep an eye out for. While checks may not be used as often as they once were, they can still be targeted by scammers in several different ways.
Knowing what to look for and regularly checking your account can help you catch suspicious activity early and take action if something doesn’t look right.
One of the easiest ways to stay ahead of check fraud is to keep an eye on your accounts. Make a habit of reviewing your transactions and checking that the checks you’ve written are clearing for the correct amounts and going to the right people or businesses.
A few things to watch for include:
Account alerts can also be helpful. Setting up notifications for transactions or withdrawals can make it easier to notice unusual activity without having to constantly check your account.
It’s also a good idea to keep track of the checks you write. Knowing the date, amount, and who the check was written to gives you something to compare with your account activity later.
Review your statements on a monthly basis. If you notice something that doesn’t look right, contact your financial institution as soon as possible.
Knowing how check fraud happens can make it easier to recognize when something may be wrong. Here are five common types to be aware of:
Checks sent through the mail can be targeted by thieves looking for outgoing payments. Once stolen, a check may be altered or used to obtain account information.
When mailing a check, consider bringing it inside your local post office rather than leaving it in an unsecured mailbox, especially overnight.
Check washing happens when someone steals a legitimate check and alters the information written on it. This could include changing who the check is made out to, the dollar amount, or both.
When writing checks, fill them out completely and avoid leaving extra blank spaces that could make information easier to change.
Counterfeit checks are created to look like legitimate checks and may even include real financial institution or account information.
Just because a check looks official doesn’t necessarily mean it’s legitimate. Be cautious with checks you weren’t expecting, especially when they come from someone you don’t know.
Fake check scams can show up in many different situations, including online sales, job offers, prizes, or other unexpected payments.
A common warning sign is when someone sends you a check and then asks you to send some of the money back or forward it to someone else. Even if the money appears in your account at first, the check could later be found to be fraudulent.
If someone sends you an unexpected check and pressures you to quickly send money elsewhere, that’s a sign to slow down and take a closer look.
Forged checks involve someone signing or altering a check without permission. A fraudster may forge a signature, change payment information, or alter other details on the check.
Reviewing your account activity and cleared checks regularly can help you catch unauthorized transactions sooner.
Check fraud can happen in different ways, but staying aware is one of the best ways to help protect yourself. Review your accounts regularly, keep track of the checks you write, be cautious with unexpected payments, and pay attention when something doesn’t look right.
Most importantly, if you see a transaction you don’t recognize or believe a check may have been altered or stolen, contact Downeast Credit Union at 800.427.1223 as soon as possible.
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