Check & Payment Fraud

Types of Check & Payment Fraud

• Check Washing – Criminals steal physical checks from the mail and use chemicals to erase the original details before rewriting them with a new payee and amount.
• Counterfeit Checks – Fraudsters create fake checks that appear legitimate but will bounce after being deposited.
• Forged Endorsements – A fraudster alters a check's payee information or forges a signature to cash it fraudulently.
• Overpayment Scams – A scammer "overpays" with a fraudulent check and asks the victim to refund the difference before the check ultimately bounces.

How to Protect Yourself from Check & Payment Fraud

• Use electronic payments whenever possible instead of paper checks.
• Monitor your accounts regularly and report suspicious transactions immediately.
• Never accept or deposit unexpected checks—especially if someone asks you to send money back.
• If you must mail a check, drop it off inside a post office rather than leaving it in an unlocked mailbox.
• Use fraud protection features like Positive Pay, a service that helps verify the legitimacy of checks before they clear.