Huntsville, Alabama (WAFF)Check-washing frauds are on the upswing nationwide, costing one Huntsville firm more than $1 million.
Check washing occurs when scammers steal a check, generally through the postal service, and use household chemicals to erase the original ink before replacing it with their own. They will then modify the name on the check and cash it for themselves.
The US Postal Service reports that it recovers more than $1 billion in counterfeit checks and money orders each year.
One Huntsville firm informed WAFF 48 News that it had lately been a victim of this increasing fraud. According to a company spokesman, check cleaning has cost them more than $1.5 million.
The company requested to remain nameless since they have lost so much money and fear they are being targeted by fraudsters.
The salesman told WAFF 48 that they will write a check ranging from $10,000 to $100,000, send it, and the money will be deducted from their account. However, the firm claims they are attempting to pay but never got the cash.
Check washing, according to Karen Reeves of the Better Business Bureau, is a rising problem, but consumers and companies should take a few steps to protect their money.
Reeves recommended using a gel pen to write your checks since the ink is impervious to most chemicals. Also, make use of electronic payment options.
If you must write a check, Reeves advises you to take extra care to ensure it arrives at its intended destination.
“If you absolutely have to use a drop box, always check and see what time are they picking up that last delivery of the day,” Reeves said. “Don’t place the check in there if you missed the prior delivery and they’re likely to linger in that box overnight.
“If at all possible, go inside the post office and put it inside the mail slot,” Reeves said. “Another option would be for the business to consider having a post office box instead of a physical mailbox.”
As a consequence of the increased number of scams in our region, the Better Business Bureau now offers a scam tracker tool kit. Here, you may report a scam and get tools to assist you resolve the matter.
According to Reeves, if you have been a victim of check washing, there are a few steps you should do as soon as you learn the money has been taken.
“Contact the bank immediately so that you can prevent further damage from this,” Reeves said. “If it was a postal issue, call the post office and submit a report to the postal inspector.
“You may also need to file a police report depending on what the particular situation is.”
For additional information about check washing, go here.
