Despite seeming retro, check fraud is experiencing a surprising resurgence, with criminals stealing billions of dollars through these schemes.
According to the U.S. Postal Inspection Service (USPIS), “check washing” fraud is inflicting substantial financial damage on Americans. Postal inspectors report intercepting more than $1 billion in fraudulent checks and money orders annually.
Despite the rise of digital financial transactions, thieves are increasingly targeting mail containing paper checks as a vulnerable point in the system.
Using common household supplies, scammers can modify stolen checks by removing the original information and substituting false details before depositing them under assumed identities. Below, we explain their tactics and how to protect yourself.
Check washing is a theft method where criminals steal checks, commonly from mailboxes, and use household chemicals such as nail polish remover or rubbing alcohol to erase the ink. After removing the original information, the thief changes the payee name and amount, cashes the altered check and escapes with the stolen funds.
This scheme, which has been around for decades, has seen a significant increase in incidents since 2021, with check fraud cases nearly doubling according to the FBI's Internet Crime Complaint Center. Postal inspectors warn that this troubling trend is expected to worsen throughout 2025.
Criminal organizations have been identified selling stolen checks on digital platforms and recruiting individuals known as “money mules” to deposit falsified checks into fraudulent accounts, according to NASDAQ Verafin. In a contemporary evolution of this long-established fraud scheme, these stolen checks are now being traded on dark web marketplaces in exchange for cryptocurrency.
Real-world cases show just how quickly it can happen, and victims are losing thousands.
According to ABC7 NY, when Carol Perlman mailed a $656 check, criminals altered it to $9,000. Though her bank eventually refunded the money, they only did so after local media covered her story.
