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Are Checks Sent Through the Mail Vulnerable to Theft?

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Posted by EditorDavid on Sunday June 28, 2026 @03:34PM from the double-checking dept.

The New York Times tells the story of a 63-year-old retiree who wrote a check for several thousand dollaras to pay her taxes. But she discovered much later that her taxes were never paid because that check had been intercepted and then altered to be payable to someone else: In some cases, thieves may pilfer one or more checks from local mailboxes. Adam Rust, director of financial services for the Consumer Federation of America, said thieves sometimes "fish" for checks at free-standing drop boxes, using long tools with sticky pads on the ends to grab letters. In other cases, more sophisticated criminals may steal large batches of checks, copy them and then sell them on the internet. Often, the purloined checks are chemically altered in what's known as "check washing" to remove the name of the recipient. The thief replaces it with a fraudulent name, and often increases the amount of the check, before cashing or depositing it.
The 63-year-old retiree's bank told her she'd waited too long to recover the funds: Schwab's "security guarantee," outlined on its website , says that "Schwab will cover losses in any of your Schwab accounts due to unauthorized activity." But fine print at the bottom of the page notes that reimbursement "requires your timely reporting of unauthorized activity to Schwab," and that Schwab "will not be liable for additional or increased losses resulting from a failure to report unauthorized activity in a timely manner." It notes that more details are available in account agreements... Notify your bank as soon as possible, said Scott Anchin, senior vice president of strategic initiatives and policy at the independent bankers association. Banks generally allow at least 30 days and sometimes up to 90 days from the time your statement is made available to you to report suspected check fraud, he said.
So how can you avoid check fraud? Adam Rust, director of financial services for the Consumer Federation of America, just suggests that "No one should ever mail a check." If you must write a check, he said, try to deliver it in person or take it inside a post office to mail rather than relying on your own mailbox or public drop boxes. The American Bankers Association recommends using permanent "gel" ink pens when you do write checks to reduce the risk of tampering... And if you don't already, consider using your bank's online bill payment service.
The article notes that even the U.S. federal government "has been moving away from paper checks for things like benefit payments and income tax refunds, saying digital payment methods are more secure."

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