Abstaining from issuing paper checks through the mail is now highly advisable due to escalating security concerns. An increasingly significant issue has arisen in relation to posting checks, showing no signs of dissipating. Ever found yourself in a situation where you mail out a check only to hear from the supposed recipient that they never received it?
The troubling reality is that organized crime is focusing heavily on check theft. As per investigation reports, check stealing operations usually involve more than one individuals. Hence, it is integral to shift to digital modes of money transfer wherever possible, as it provides a transaction trail and reduces the risk of theft.
But how exactly do these scammers get their hands on the checks? The most prevalent technique in this illicit operation is ‘wash-check’. This involves the thief pulling your check from your mailbox, absconding with it, and then manipulating the payee’s name and the amount on the check.
In certain scenarios, the culprits even go to the extent of setting up a fictitious account to launder the stolen check. This only goes on to underline the extent of sophistication involved in these illegal activities.
There is a second tricky method criminals have started employing called ‘Melted Ink’. This fraudulent way entails using tech that melts the ink written in the ‘payee’ section of the checks, allowing the wrongdoer to insert bogus names.
A specific case was mentioned in relation to FischTank – a firm that advised all its customers to revert to another form of paper because they were dealing with a severe check fraud situation. This case, reported by WIVB, illustrates the extent of the issue.
The surge in these fraudulent activities is truly frightening – banks reported over 680,000 incidents of check fraud to the Financial Crimes Enforcement Network just in the previous year. This figure shows an alarming increase as it is nearly twice the number from two years ago.
The financial implications are massive, too. The criminals have managed to siphon off millions upon millions of dollars utilizing these deceitful methods. Moreover, in numerous instances, the pilfered money isn’t recovered.
Against the common belief that paper checks are becoming obsolete, there’s a staggering number of them still in circulation. To put things into perspective, as many as 3.4 billion checks were reportedly written just in 2022.
This, though, is a fraction of the volume of checks witnessed three decades ago. For reference, in the pre-digital 1990, a colossal number of 19 billion checks were dispatched. The contrast paints a clear picture of how far we’ve come with respect to modes of transactions, yet the challenges with paper checks remain.
Paper checks, while decreasing in popularity due to the advent of the digital age, continue to be a substantial part of the financial infrastructure. As we have seen, this poses significant risks in light of increased fraudulent activities.
To sum up, it’s evident that positive strides have been made in the digital payments landscape while maintaining traditional transaction methods such as checks. However, given the rising scams associated with check fraud, there’s an increasing need to be aware of these threats.
In response to these threats, businesses and individuals ought to prioritize digital transactions wherever possible and avoid sending checks in the mail. This small step can greatly help reduce the occurances of check theft.
Considering the scale and effect of check-related thievery, education and adoption of secured digital transaction methods are not just proactive moves but necessary adaptations. It’s vital to understand this emerging issue and take precautionary measures for a secure financial future.