In an increasingly digital world, check fraud might seem like an outdated threat, but it remains a persistent issue. According to the Financial Crimes Enforcement Network (FinCEN), check fraud has surged in recent years, including by schemes like mail theft and counterfeit checks. Latitude 32 Credit Union is here to help you understand how to protect yourself and your finances.
What Is Check Fraud?
Check fraud occurs when criminals manipulate, forge, or create fake checks to steal money from your account. Common methods include:
- Check Washing: Fraudsters erase ink from a legitimate check and rewrite it with a new payee or amount.
- Counterfeit Checks: Scammers create fake checks using stolen bank details.
- Forged Checks: Criminals steal blank checks and forge your signature.
- Altered Checks: Scammers modify details like the payee or amount on a valid check.
What Are Check Scams?
Check scams typically involve deceitful tactics to trick victims into depositing fraudulent checks. Examples include:
- Overpayment Scams: Someone overpays for a service or product and asks you to refund the difference.
- Prize and Lottery Scams: A fake check accompanies claims of winning a lottery or sweepstakes, requiring you to pay taxes or fees upfront.
- Job Scams: Fraudulent checks are presented as signing bonuses or payments for remote jobs, with instructions to return a portion.
Tips to Avoid Check Fraud and Scams
- 1. Use Digital Payment Methods
Digital payments like online banking or peer-to-peer apps can be more secure alternatives to checks, although there is plenty of fraud on the digital payment side: it’s simply a different variety. - Digital methods effectively eliminate the risk of physical theft and tampering; they make it easier to be emotionally manipulated into sending payments that should never be sent.
- Either way, be on your guard.
2. Safeguard Your Checks
- Store checks in a secure location.
3. Write Checks Carefully
- Use black gel ink to help prevent tampering; this ink can be harder to erase.
- Fill out checks completely, leaving no blank spaces for alterations.
4. Mail Checks Securely
- Drop checks directly at the post office or use secure mailboxes – this is the safest option.
- If you do use your mailbox, at least avoid leaving outgoing mail in it overnight.
5. Monitor Your Accounts
- Regularly review your account statements for suspicious activity.
- Check images of cashed checks to ensure they match your intended recipient.
6. Verify Suspicious Checks
If a check seems too good to be true, contact your credit union before depositing it. Latitude 32 Credit Union’s fraud detection services can help identify red flags.
What to Do If You’re a Victim of Check Fraud
If you suspect check fraud:
- Contact Latitude 32 Credit Union Immediately: Report the incident so we can investigate.
- Monitor Your Accounts: Continue reviewing statements for further suspicious activity.
- File a Police Report: Document the fraud to support any claims.
Stay Vigilant with Latitude 32 Credit Union
At Latitude 32 Credit Union, we prioritize your financial security. Let us support your journey to safe, smart financial management.
By staying informed and cautious, you can protect your finances from check fraud and scams and help to ensure your money stays safe.