What You Need to Know About Safeguarding Your Accounts
The FBI and the United States Postal Inspection Service (USPIS) recently issued a public service announcement warning that mail theft-related check fraud is on the rise. Criminals get their hands on legitimate checks by various means and can then use manipulations such as “check washing” or “check cooking” to physically or digitally alter your check. This allows them to steal your money and sensitive information. Oftentimes stolen checks clear and funds are withdrawn before financial institutions or account owners are even aware of the fraud. Unfortunately, once a fraudulent check has been processed, it can be difficult to remedy.
This reinforces the importance of protecting yourself with a combination of cybersecurity measures and smart habits. Here are some steps you can take to keep your money and sensitive information safe.
Using USPS to Send or Receive Paper Checks
- Go to the post office. If you must send a paper check in the mail, it is best to bring it directly to your post office and not drop it in a collection box. Mail that sits in collection boxes is more vulnerable to theft. However, if you have no alternative but to send your mail in a collection box, make sure you deposit it before the last pickup of the day so that it is not left to linger overnight.
- If you are writing paper checks use indelible black ink. This is a deterrent even if a fraudster manages to get their hands on your check because this type of ink is more difficult to remove.
- Follow up. If you have mailed a check, make sure that your intended recipient has it in their possession in a timely manner. If not received, consider a stop payment with your bank and issuing a new check.
- Create an Informed Delivery account. USPS offers a free service that emails you images of the mail and packages you are scheduled to receive. This can help you to track any checks you may be expecting.
- Consider USPS vacation hold if you will be away from home for any period of time. You can request that your local post office places a hold on your mail delivery. There is a minimum of 3 days and a maximum of 30 days for this service.
- Shred cashed checks. This is an extra level of precaution to help prevent anyone from stealing your sensitive financial information.
Steps to Safeguard Your Accounts
- Pay bills through secure online payment accounts and use two-factor authentication (2FA) whenever possible. 2FA requires you to have two different types of information to confirm your identity. For example, you provide a password or a pin to begin the process of signing into your account and then use an authenticator app on your mobile device or provide a second one-time code that is sent to you before you are granted access, often via your cell phone.
- Use electronic payment methods. You can use ACH payments to transfer money from one bank to another or you can use a wire transfer as an alternative to check writing.
- Request direct deposits. If you are being paid a large amount, ask for it by way of direct deposit into your checking account instead of by a paper check sent in the mail.
- Monitor your accounts. Keep an eye out for any suspicious activity, and if you have written any checks, review the images online to ensure they were transacted correctly.
What should you do if suspect you have become a victim of check fraud?
If you think a check has been compromised, there are few steps you should take.
- Contact the payee and confirm if they have received the check.
- Contact your bank or financial institution and stop payment on the check if it has not already cleared and you suspect fraud.
- File a report with the Postal Inspection Service.
- File a report with your local police department.
- Contact credit reporting bureaus and continue to monitor your accounts for any suspicious activity.
Criminals are always working to find new ways to steal our money and information. We must remain vigilant and do our best to protect ourselves. If you would like more information, please contact us.
