Mobile Site

Check Washing

By Jennifer Abney Anchor

M30o93H7pQ09L8X1t49cHY01Z5j4TT91fGfr Check Washing

Published: Wed, February 20, 2008 - 10:37 pm
Last Updated: Wed, March 19, 2008 - 12:01 pm

Jennifer Abney

Would you ever give a stranger a blank check? You could be doing just that and not even realize it until its too late. Sgt. Paul Soulier with the Mobile Police Department investigates check fraud and has seen hundreds of people fall victim to it. He says one type in particular known as check washing is a dirty business. In fact, hundreds of millions of dollars are lost each year due to check fraud, like check washing. "It's more common than we want it to be," he said, "People are stealing checks from legit businesses and legitimate persons in a process we call check washing, they take off info and put on what they want.

Check Washing:

when a someone takes your check & uses chemicals to wash the recipient’s name and amount from the check, then alters it.

Sgt. John Tindell with the Escambia County Sheriff's Office sees this type of crime in Pensacola too. He says you could be increasing your odds of becoming a victim and not even realize it. "Mail theft is big in this business," said Tindell, "People just go around and pull mail out of mailboxes with your account information on it." Sgt. Soulier agrees, "When you put that flag up to alert the postman to get your mail, it's an invitation for criminals." Law enforcement officials recommends dropping bills off at the post office or those large blue mailboxes. And,

there are still other ways to protect yourself.

Uni-Ball 207 Gel Pen

Uses special gel ink & color pigments.
almost impossible to wash.
refillable & costs less than $2.

Products like Superchecks claim to combat check washing. They claim to be sensitive to over 80 different chemicals. However, one of the cheapest things you can do is invest in a $2 gel pen. Its makers claim its immune to check washing. We put three different pens to the test. We tried two gel pens and one ball point pen in three different household chemicals, the gel pen held up the best. Scott Koser was a victim of check fraud. His financial planning business was targeted by a ring of check thieves. Koser not only changed the pens he uses, but took a few more security measures to lower his risk of becoming a victim again.

"The big change we made was to move to the pens you can't wash," said Koser "If you're a small business like us and there isn't someone reconciling the books quickly with regularity you are putting yourself at maximum risk." Koser's company caught the fraud within eight hours and then his bank took action. However, it still cost dozens of man-hours and created mounds of paperwork for his company. "It was frustrating at how easily something like this can happen when you are doing the things you need to do," said Koser. Sgt. Soulier says unfortunately more businesses are targeted because of the volume of checks produced and the amount of money available. Koser hopes more business owners will help bring attention to the problem. "I think that a lot of business leaders don't want people to know something adverse has happened to them," said Koser, "They think that it will reflect poorly on them."

How to Protect Yourself

Take mail to a postal office or a postal mail box.
If you’re ordering new checks, ask if you can pick them up from your bank. Do not have blank checks delivered to your mailbox.
If you dispose of cancelled checks, make sure that you shred them.
Check your bank statements as soon as you receive them. In some cases, you may only have 30 days to report a fraudulent check. Check with your individual bank on their company policy.
If you have Social Security checks delivered to home, if possible, have them sent through direct deposit instead.

This type of crime leaves some victims with just raw emotions. Like a victim, we'll call "Lynn" because she doesn't want her identity known. She is still dealing with not only the financial agony of check fraud, but the emotional side effects too. I was "..afraid, concerned, what will they do next?" Lynn wondered Lynn said her company had approximately 20 thousand dollars stolen. Her bank worked with her to reimburse the amount to her business's account. It also disturbed Lynn when she discovered one of her customers was the culprit. "They took advantage of us," she said, "You hate the feeling you can't trust anyone anymore." According to Sgt. Tindell check washing and other check frauds are on the rise. He sees 100 cases a week. "It's the biggest business out there in crime," he said, "and it gets the least time in prison." Koser hopes more awareness will change this. "The only way we are going to get rid of this kind of thing is to prosecute someone publicly and send them away," said Koser, "So people will know this isn't a victimless crime without consequences." Lynn like many other victims of check fraud is now concerned for her personal and business accounts. "It makes you think, do we need checking accounts," Lynn asked,"What should we do next and how do we pay our bills?" We asked Sgt. Tindell for his suggestion. "It very difficult to do," Tindell said, "That's why you need to keep an eye on your accounts." And, the good news is law enforcement in this area solve almost half of these types of case. That's much higher than other parts of the country. And Sgt. Soulier has one message for those criminals involved in check fraud, "Sooner or later you will get caught!"

If You Are A Victim

Report the crime to police & get a copy of the police report
Keep a log of all conversations with authorities
Call credit card issuers immediately; follow up with a letter and a copy of the police report
Notify your bank
Call the fraud units of the credit reporting companies and have them put a fraud alert on your name & social security number

Source: Frank W. Agagnale’s Check Fraud Holder in Due Course

The Santa Rosa County Sheriff's Office needs your help identifying two suspects who may be connected with a check washing scam. The sheriff's office released these pictures. Investigators say several checks involved have been passed at local Wal-mart stores. If you can help with this investigation call Crime Stoppers at 437-STOP.

Law enforcement also recommends getting a Credit Bureau Fraud Alert for your account. It is also recommended that you become aware of your rights with your bank when reporting check fraud. And, make sure you know what you need to do when you first realize someone has compromised your accounts. Watch video tips from our experts about avoiding check fraud.

How to Put A Fraud Alert On Your Credit Report.

click to view

What is a fraud alert?

An alert places a statement on your credit report. If an imposter attempts to obtain credit in your name, the creditor will check your credit and will encounter a statement that says something to this effect: "I may be a victim of fraud. Call me at my phone number 123-456-7890 before extending credit." Extended fraud alerts may also be available; details are available on the bureaus’ Web sites.

How long is a fraud alert in effect?

An initial fraud alert lasts 90 days. If you are an identity theft victim, you can request an extended fraud alert that remains a part of your credit files for seven years.

How do I place a fraud alert?

Call the toll-free fraud number of any one of the three major credit bureaus to place an initial fraud alert on your credit report for 90 days. The other two credit bureaus will automatically be notified to place fraud alerts, and all three credit reports will be sent to you free of charge.

Equifax
1-800-685-1111 -- select option 4.
www.equifax.com

Experian
1-888-EXPERIAN (888-397-3742)
www.experian.com

Trans Union
1-800-916-8800
www.transunion.com

To place an extended fraud alert, you will need to provide a copy of a police report and proof of your identity.

Source: Washington state Attorney General's office

News Map