Check Fraud And Scams

The FBI and the United States Postal Inspector issued a Public Service Announcement regarding an alarming increase in check fraud. There has been a substantial increase in thieves stealing checks from mailboxes and then altering and fraudulently signing the checks before depositing them.

Protect Your Mail
To prevent check fraud from occurring, there are some simple steps you can take to protect your mail.

  • If you must mail a check, don't put it in your mailbox at home or in a blue USPS collection box. Instead, place the check in a secure envelope and take it directly to the post office and place it in a secure mail drop inside the building. Or, you can avoid mailing checks altogether by using online bill pay.
  • Check your mailbox every day. The longer your mail sits in the box, the more vulnerable it is to being stolen. If you are going to be gone for an extended period of time, use the USPS hold mail service.
  • Sign up for the free Informed Delivery® service by the USPS. Daily emails will be sent to you giving you a preview of mail and packages scheduled to arrive. If you do not receive mail you are expecting, contact the sender quickly to inquire about it.
  • If moving, file a change of address with USPS and your financial institutions to ensure important mail is rerouted to you.

The Financial Trend Analysis from September of 2024 reports that stolen checks are frequently used to create counterfeit checks. Fake checks are a common instrument used in scams.

Fake Check Scams
One type of check scam involves a victim receiving a check for significantly more than what was anticipated. The check looks real but is not. The sender then reaches out requesting that the check be deposited and for the victim to return the amount that was overpaid. This request will come with a sense of urgency because it may take time before the check is
revealed to be fraudulent. At this point the victim will not receive the promised funds, and they will lose the money withdrawn from their account. The following are some tips to help avoid a fake check scam.

  • Scammers often demand return payment via gift cards, money orders, cryptocurrency, or wire transfer because these payment types are difficult to trace and nearly impossible to get back.
  • Don't cash a check and send money back if you receive overpayment. If the initial check is incorrect, it can be cancelled and a new one issued.
  • Trust your intuition. If anything seems too good to be true, it probably is. Don't feel pressured or rushed into making any decisions. It is important to understand why you received a check and verify the legitimacy of the situation.

Visit Federal Trade Commission to learn more about different types of check scams and how to avoid them.

Steps to Protect Yourself
If you have become a victim, the following are steps you should take to protect yourself:

  • Take immediate action and file a police report.
  • Contact your credit union or bank to notify them of the situation.
  • Reach out to one of the three major credit bureaus (Equifax, Experian, or TransUnion) to file a fraud alert. Visit Annual Credit Report.com for more information about protecting your identity and how to contact the credit bureaus.
  • Report the scam to the Federal Trade Commission at reportfraud.ftc.gov and get next steps on how to protect yourself.
  • If you paid a scammer, visit consumer.ftc.gov for additional information on what to do, based on the type of payment you used.

With the rise in fraud and scams it is important to stay vigilant. Monitor your accounts regularly, check your credit report at least once a year, and always stop to think before taking action. Continue to build your awareness by learning what are the common scams and the signs you can recognize to avoid them. Visit our Online Learning Center for more resources
including our collection of articles on Fraud and Security.

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(April 2025)