Check fraud: how it works and how to stop it
Most check fraud today starts with a stolen check: it’s taken from the mail, the ink is “washed” off and a new payee and amount are written in, or the account details are copied onto counterfeit checks. The best protection is to mail checks safely, use security features and permanent ink, reconcile often, and use positive pay for business accounts.
Common types
| Type | How it works |
|---|---|
| Check washing | Chemicals remove the ink; the thief writes a new payee and a higher amount. |
| Counterfeit checks | Your routing and account number are printed on fake checks. |
| Altered payee | The payee name is changed or added to. |
| Forged signature | Blank checks stolen from a checkbook are signed by the thief. |
| Fake check scam | You get a check, deposit it, and send part of the money back before it bounces. |
How to protect your checks
- Mail safely: drop checks inside the post office, not in a mailbox with the flag up or an outdoor blue box after the last pickup.
- Permanent ink: use a gel pen with indelible ink for handwritten parts, and fill every line.
- Security features: use check stock with a void pantograph, microprinting and chemical-reactive paper (see check stock paper).
- Positive pay: send your bank a list of issued checks; anything that doesn’t match is held. See positive pay.
- Reconcile often: match your register with the bank weekly from online banking.
- Lock blank stock away and track the check numbers you’ve used.
If a check is stolen or forged
- Call your bank immediately and stop payment on any check that hasn’t cleared.
- Report forged or altered checks that have cleared in writing. Under UCC § 4-406 you must review statements and report problems promptly; claims for an unauthorized signature or alteration are cut off after one year.
- Report mail theft to the U.S. Postal Inspection Service, and fake check scams to the FTC.
- Consider closing the account and opening a new one if your account number is being used on counterfeits.
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Print a checkQuestions
Is it safe to mail checks?
Mail theft of checks has risen sharply, according to the U.S. Postal Inspection Service and FinCEN. Mail at the post office counter or use electronic payment for large amounts.
Will my bank reimburse a forged check?
Usually, if you report it promptly. Delay can shift the loss to you, especially if the same thief uses more checks after you should have noticed.
Are printed checks safer than handwritten ones?
Printed amounts and payees with toner fused into the paper are harder to wash than ballpoint ink.
Checked against UCC §§ 4-403 and 4-406, U.S. Postal Inspection Service and FTC guidance, November 2026.