The art of counterfeiting has been around for many centuries. Around 400 BC Greek coins were commonly counterfeited by covering a less valuable metal with a layer of precious metal. While counterfeiting is commonly associated with currency and fine art, document counterfeiting and similar forms of forgery have existed anywhere paper has been used for financial transactions and a wet signature was needed. This was particularly present in land transfers where property titles determined ownership and the ability to sell or trade was determined by the authenticity of that document.
While counterfeit currency is still a significant concern of the United States Secret Service here in the United States, counterfeiting has advanced to many consumer products such as big budget films, fine wines and spirits, luxury accessories and timepieces. More recently a relatively new form of fraud is showing up in cities and states across the country. A trending bank fraud called “check washing” starts when a thief steals your check from the US Postal Service then uses specific chemicals to “wash” off the ink signature replacing it with their own name or a fictitious one. The goal is to cash the washed check outright, or deposit into an account with the same intent. In many instances, when successful, a victim of check washing could see their bank account completely wiped out.
Check washing is the process of erasing details from checks to allow them to be redrafted for criminal purposes of presenting them at retail banks and/or otherwise legal cash exchange facilities to withdraw from the victim’s bank account. Washed checks are less likely to be used for the purpose of making a payment unless there is an immediate transfer for goods or services or a third party acting in concert with the perpetrators.
The actual process of washing a check is relatively simple and can be accomplished with basic solvents. The actual solvent is basically irrelevant — more important is the polarity of the solvent. Polarity is when an entity contains two distinct and opposite poles that can either attract or repel each other. Both nail polish remover (acetone) and rubbing alcohol (isopropanol) can pull most common inks away from paper in minutes. Similarly, a non-polar dye would require a non-polar solvent (toluene or a similar hydrocarbon). Some scammers will even use copiers or scanners to print fake copies of a check.
Tips on Protecting Check Fraud
Postal Inspectors recover more than $1 billion in counterfeit checks and money orders every year, but you can take steps to protect yourself. Firstly, the Postal Service will always advise you to never let mail accumulate in your home mailbox, as that in itself is an indication to fraudster’s that you are away providing opportunity and time to carry out the scam. The following are additional ways to protect your mail from theft:
- If your home mailbox is accessible roadside, which is common in rural and suburban cities and towns, consider a locking device or purchasing a PO box from your local post office.
- When possible, use direct deposit, wire, or ACH for all inbound and outbound financials transactions
If you must place a check in the mail use a pen with blue or black non-erasable gel ink. Gel ink soaks into paper and is more difficult to remove than ballpoint-pen ink. - Take your outgoing mail to a post office. Street level mailboxes are no longer reliable and are easily compromised.
- If you’re going to be away for an extended period and unable to have your mail retrieved, contact your local post office and have them suspend mail delivery to your home and hold your mail.
- Initiate Positive Pay with your bank. Positive pay can provide individuals and companies with an additional layer of protection for your bank accounts. While many banks often try to do their due diligence when it comes to preventing fraud, there may be instances where bad checks may fall through the cracks. Positive pay helps banks detect fraud by matching the company’s issued check with the check presented for payment. The dollar amount, check number and account number must all match, or the check is flagged and sent back to the issuer for review.
- Check your bank balances frequently using mobile banking applications to identify any fraudulent activity. We recommend only accessing your online banking appl using a secure password protected WIFI connection.
If you suspect check or credit card fraud, immediately contact your bank, and report it. If your account(s) have been compromised, you probably want to close those accounts and obtain a new one. If you’ve been the victim of multiple fraud events, consider activating an established fraud monitoring service to work with. Fraud monitoring is the core of a modern fraud prevention strategy. Continuous fraud monitoring constantly monitors all transactions, not just the initial login and ensuing financial transactions such as payments and funds transfers.
At Integrated we investigate all levels of property crimes, including but not limited to; site surveillance of your home or business or help you choose the right security technology to deter mail and package theft. Call us at 888 808-9119 to speak with a seasoned investigative specialist. We can also be reached through our website at www.intesecurity.com.
