How to Prevent Check Fraud
Even with the rise of digital payments, check fraud continues to be a problem on Long Island and throughout the country. Unfortunately, criminals exploit vulnerabilities in the check-writing process, putting regular members and businesses at risk. In this article, we’ll explore common check fraud schemes and offer ‘real easy’ steps to protect your money.
Common Check Fraud Schemes
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Mail fraud. Mail theft-related fraud is on the rise. Fraudsters can gain access to checks in numerous ways, like taking checks left in residential mailboxes or USPS blue collection boxes, burglary of USPS facilities, and robbery or bribery of USPS employees.
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Forged signatures. One of the simplest forms of check fraud involves forging the account holder’s signature. Criminals may copy the signature from a stolen check or, in some cases, attempt to guess it. This can lead to unauthorized withdrawals and significant financial losses.
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Check washing. Criminals use chemicals to erase the ink on a legitimate check, allowing them to change the payee and amount. They can then sell the blank signed check or fill it out to themselves and deposit it.
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Counterfeit checks. Advances in printing technology enable criminals to produce counterfeit checks that are nearly indistinguishable from legitimate ones. These fake checks often replicate the look of authentic checks, making them difficult to spot. Red flags include missing security features like watermarks or microprinting.
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Check kiting. This scheme involves writing checks from one account to another, with not enough money in either account, to create the illusion of having more money than what exists. This lets the fraudster temporarily access funds they don’t have.
Check Fraud Preventions Tips
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Regularly check your mailbox. To avoid mail theft-related check fraud, you should regularly check your mailbox and avoid leaving mail in your mailbox overnight or for extended periods of time.
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Monitor your accounts. Regularly monitor your accounts, either through online banking or mobile apps, for any unrecognized transactions. Set up alerts for suspicious activity and report any concerns to your financial institution immediately.
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Secure your checks. Store your blank checks securely out of sight in a locked drawer or safe. Retrieve any checks written to you that are delivered by mail promptly, and if they are lost or stolen, contact your financial institution immediately to stop payment. The stop payment instructs the financial institution not to honor the check if it hasn’t already been processed. To stop payment on a check, the financial institution needs information such as the check number, the amount, and the name of the person or business the check was made out to.
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Use online banking. Suffolk Credit Union’s Online and Mobile Banking offer real-time transaction monitoring and the ability to set up alerts for suspicious activity. You can set up alerts for your account through Card Controls based on location, merchant types, transaction types, and spend limits.
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Be cautious with personal information. Never share your account or routing numbers with untrusted sources. Be wary of unsolicited requests for personal information, especially via phone or email. Always verify the identity of the requester to avoid phishing scams. Shred any documents with your account information, including old checks and statements, before throwing them away.
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Opt for electronic payments. Whenever possible, use electronic payment methods like your Suffolk Credit Union Mastercard Debit or Credit Card. These methods are more secure and leave a clear record of the transaction.
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Use tamper-proof pens for checks. Use a tamper-proof pen with non-erasable ink, such as gel ink, which is harder to remove than standard ballpoint ink.
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Write checks carefully. Avoid leaving blank spaces on your checks. Fill in all the lines completely and draw a line through any unused space.
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