Be Aware of Check Fraud: Don’t Let Scammers Steal Your Season

In the age of online and digital banking, you may think paper check fraud is fading. In reality, check-related scams are stealing joy, and affecting individuals young and old. Criminals are using increasingly sophisticated techniques to steal, alter, and cash checks, often leaving victims unaware until money has already vanished from their accounts.

Understanding how check fraud works and how to prevent it is the strongest defense. Always remember if you cash a check and it comes back returned, you a liable for repayment. Don’t take the chance.

What Is Check Fraud?

Check fraud occurs when someone illegally uses, alters, or counterfeits a check to steal money. Common forms include:

Mail Theft & “Check Washing.” Thieves steal checks from mailboxes or USPS collection boxes, then use chemicals to “wash” the ink off. They erase the payee and amount and rewrite it for a different value.

Counterfeit Checks. Fraudsters create fake checks using stolen account numbers or business information. These often resemble payroll, utility, or refund checks.

Altered Checks. Legitimate checks are intercepted and manipulated—usually by changing the payment amount or payee name.

Fake Check Scams. Victims receive a check (often from online marketplaces, job scams, or sweepstakes). The scammer asks them to deposit it and send money back before the credit union discovers the check is fake. Fake checks are also used in romance scams.

Warning Signs of Check Fraud

Be alert if you notice:

A check you mailed never arrived at its recipient. You may need to place a check stop pay.

Unauthorized checks appearing on your bank statement. Keep an accurate check book to reference as needed.

Significantly altered handwriting or dollar amounts. Review all of the text on the check for inconsistencies.

A request from someone you don’t know to deposit a check on their behalf. This shifts the liability onto you if the check is returned.

Unexpected checks from sweepstakes, mystery shopper jobs, or refunds. If it’s too good to be true, it most likely is.

An online lover who asks or expects money from you. Scammers will prey on your “relationship” to get past your good judgement.

If you are unsure why you received a check or where a check you wrote has been deposited, contact us at (920)729-2999 immediately.

How to Protect Yourself

Secure Your Mail. Be aware of where you leave your mail. Take the time to drop outgoing mail inside the post office. Avoid leaving checks in home mailboxes overnight. If possible, install a locking mailbox at your home to protect delivered mail too.

Monitor Your Bank Accounts Frequently. Check your account activity online or through your mobile banking app to catch unauthorized withdrawals early.

Switch to Electronic Payments When Possible. Electronic online bill pay, ACH transfers, or debit transactions eliminate the risks associated with mailing physical checks.

Be Cautious with Unexpected Checks. If a check arrives from an unfamiliar source—even if it looks official—treat it with suspicion. When in doubt, call the issuing company using a verified phone number.

Ask If It’s Too Good to Be True. While you might think “bank error in your favor” sometimes happens, very rarely are people giving away free money. Ask yourself what is the catch?

Do not rely on a bank’s “check hold” to prove if funds are legitimate or not. In the case of alterations or a forgery, it may take weeks or months for the other party to realize what happened. That is why you should never deposit a check you are unsure of.

What to Do If You Suspect Check Fraud

If you suspect check fraud:

Contact the credit union immediately to investigate the suspect transaction.

If money has been lost, file a report with your local police department. This may be required if you are reporting a forgery.

Report mail theft or stolen checks to the U.S. Postal Inspection Service.

Place alerts on your credit reports if your personal information may have been compromised.

Acting quickly increases the likelihood of recovering funds. Depending on the type of fraud that occurs, there may also be time windows for any disputes.

The Bottom Line

Check fraud remains a fast-growing crime, but staying informed and taking simple precautions can dramatically reduce your risk. Whether you’re mailing a bill payment, receiving a reimbursement, or accepting a check for the sale of an item, remain cautious and proactive. Awareness is one of the strongest tools in preventing financial loss.

Evergreen Credit Union is a money-smart and earth-kind financial in Neenah and Appleton, Wisconsin. Membership is open to everyone who lives or works in Outagamie, Waupaca, Waushara, Calumet, or Winnebago counties.