Check washing, a deceptively simple yet alarmingly effective form of financial fraud, involves altering a legitimate check's details to divert funds. According to the National Check Fraud Center, this technique accounts for a significant portion of the estimated $815 million lost annually to check fraud in the United States.
Criminals exploit the trustworthiness of a genuine signature, often rewriting the payee's name and inflating the amount. While advancements like electronic inks and watermarks offer some protection, the American Bankers Association reports that check fraud still represents a major challenge, with losses averaging $1,546 per fraudulent check. Understanding check washing and its implications is crucial for individuals and businesses to safeguard their finances against such deceptive practices.
The washing process is not especially difficult, although the results can vary widely. In a typical operation, a legitimate check is prepared by placing a protective seal over the signature line. This could be a low adhesive tape or sticker. The check is then held with tongs and placed in a pan that usually contains acetone (nail polish remover), paint thinner, or bleach. The chemical dissolves many types of ink found in standard ballpoint pens. Once the ink from the check has dissolved completely, the check is hung up to air dry. The result, ideally, is a signed blank check, which the con artist can rewrite to suit his or her needs.
One popular method of obtaining legitimate checks for check washing is to drive through neighborhoods and secretly inspect outgoing mail left in curbside mailboxes. Payroll checks and bill payments are especially popular targets. Sophisticated con artists have been known to carry portable computers, laminating machines, scanners, and high-end printers in their vehicles that allow them to create false identifications in order to cash batches of washed checks.
The main problem with this type of fraud is creating a truly blank check. The ink contained in a standard blue ballpoint pen is easily removed with acetone, but black ink can be problematic. Experts say gel pens with black ink provide the best protection against check washing, since the gel ink resists chemical stripping and contains pigments that permeate the fibers of the check itself. A washed check cannot be used if it looks altered or bleached out.
One way that people can protect themselves against this type of fraud is to switch from blue to black ink when writing checks, and to use a gel pen whenever possible. Additional safety measures include taking bills and other outgoing mail containing checks directly to a post office or public mailbox. A personal mailbox with a lock may also discourage outsiders from stealing the mail, but this type of mailbox may not be usable for outgoing letters. Many experts recommend that people invest in checks containing anti-fraud elements such as electronic inks, hidden watermarks, or microprinted lines that cannot be photocopied or scanned clearly.
FAQ on Check Washing
What is check washing and how does it occur?
Check washing is a form of fraud where criminals erase the handwritten details on a check, typically using chemicals like acetone, bleach, or alcohol. Once the original information is removed, they can rewrite the payee and amount, effectively redirecting the funds to themselves. This crime exploits the physical nature of checks, turning them into blank slates for fraudsters to manipulate.
How can I tell if a check has been washed?
A washed check often has telltale signs such as discoloration, smudging, or a different texture in the areas where the original ink was removed. The paper may appear thinner or warped due to the chemical treatment. If you notice any inconsistencies or alterations on a check, it's essential to verify its legitimacy before proceeding with any transactions.
What are some effective methods to prevent check washing?
To prevent check washing, use gel pens with ink that bonds to the paper fibers, making it harder to wash off. Avoid leaving mail in an unsecured mailbox, especially outgoing checks. Consider electronic payments when possible, as they don't carry the same risks. Regularly review your bank statements for any discrepancies, and report lost or stolen checks immediately. According to the Federal Trade Commission, monitoring accounts frequently can help detect fraud early.
What should I do if I'm a victim of check washing?
If you fall victim to check washing, report the incident to your bank immediately. They can stop payment on the check and monitor your account for further suspicious activity. Additionally, file a police report and notify the Federal Trade Commission to help them track and combat this type of fraud. It's also wise to contact the three major credit bureaus to place a fraud alert on your credit reports.
Are there any recent statistics on the prevalence of check washing?
While specific statistics on check washing can be elusive, the National Check Fraud Center has indicated that check fraud, in general, is a multi-billion dollar problem. The advent of digital banking has not eliminated check fraud; instead, it has evolved with technology. The American Bankers Association reported that in 2019, check fraud accounted for 47% of industry deposit account fraud losses. Vigilance and preventive measures remain crucial in combating check washing and other forms of check fraud.
