Check Washing Fraud Surges Due to AI and Mail Theft

Check washing fraud is experiencing a resurgence, driven by advancements in artificial intelligence and an increase in mail theft. This type of fraud involves criminals altering the payee name and amount on a check, allowing them to deposit the funds into their own accounts.

Traditionally, check washing involved using chemicals to erase the ink on a check. However, modern criminals are now using AI-powered tools to create convincing forgeries. These tools can replicate signatures and fonts, making it difficult for banks and individuals to detect the fraud.

Mail theft provides criminals with the checks they need to carry out their schemes. Stolen checks are often sold online or used directly by the thieves. Law enforcement agencies are working to combat mail theft, but individuals can also take steps to protect themselves.

To safeguard your finances, consider the following:

* **Use online banking:** Pay bills electronically whenever possible.
* **Monitor your accounts:** Regularly check your bank statements and credit reports for suspicious activity.
* **Mail checks securely:** Drop outgoing mail directly into post office collection boxes or at the post office itself.
* **Consider using a security pen:** These pens use ink that is difficult to wash or alter.
* **Report suspected fraud:** If you believe you have been a victim of check washing, contact your bank and file a police report immediately.