Dear Liz: I had several checks stolen from the U.S. Postal Service. The thieves altered and cashed the checks. I monitor my bank accounts religiously and discovered the altered checks quickly. I immediately put holds on the checks and for the most part I have been reimbursed. One check, however, was written out to one bank for $4,339 and then cashed through another bank. The first bank told me they were pursuing the second bank for payment, and that when they get reimbursed, I’ll get reimbursed. I’ve been waiting since October 2022! Recently I received a letter from the first bank saying, in effect, that the other bank hasn’t responded so they consider the case closed. Basically, I’m out the money. This is obvious fraud and no one is taking it seriously.
Answer: Check fraud is soaring even as the use of checks has declined. Thieves take signed checks from mailboxes, sometimes using keys stolen from mail carriers, and “wash” them with common solvents such as nail polish remover. Once the checks dry, they change the amounts and payees and then cash the altered checks.
If you report the problem to your bank promptly — typically within 30 to 60 days of your statement date, depending on state law — then you should be made whole.
You can start by making a complaint to the Consumer Financial Protection Bureau online or by calling (855) 411-2372. The CFPB has a pretty good track record of getting companies to respond.
Also, please look into other payment methods. Electronic payments are much more secure as well as faster and easier to trace.
Because I am concerned about check fraud, I pay most of my bills online. However, I still need checks for paying my housekeeper, gardener, etc. I use a gel ink pen to deter fraud but was wondering if there is something else I should consider doing.
I’ll tackle this in a future column, but you might ask if you can pay them via Venmo, Zelle or PayPal.