What is a Washed Check?

Do you, like most people, thing the term washed check simply means a check that has went through the washer?

While that is technically correct, there is a far more sinister meaning behind the term.

How I learned the meaning of the term washed check.

A while back, at my current place of employment, my supervisor received a call from a very alert teller at the bank with which we deal.

The teller was questioning a check that had been submitted for payment. Although it appeared to be a legitimate check, including an authentic signature, she was familiar enough with our account to realize that something just wasn’t right.

The teller was correct. The check had been washed.

Check washing occurs when a scammer steals a check, usually from a mailbox, and using special chemicals, erases certain details, such as the payee and amount, leaving the signature intact. Once the check has been washed, it is made out to the scammer for an amount of the scammer’s choosing.

If the scammer is successful at cashing the check, both the funds and the scammer will be long gone before the account owner becomes aware they are a victim.

How does a scammer get a check to wash?

In the case of check washing, checks are typically stolen from mailboxes.

In our case, the check was stolen from a USPS blue mailbox, out of which, we later found out, a number of checks had been stolen. The scammer was able to retrieve the dropped mail with the aid of a fishing pole and sticky tape as bait.

Any mailbox is fair game for a scammer.

How can you protect yourself against check washing?

Use online bill pay when possible.

Of course, there are risks of paying online as well. However, by paying online, you eliminate the risk of a physical check being intercepted and washed.

Don’t leave mail in a mailbox for an extended period of time.

Whether you are sending or receiving checks, don’t leave them for any length of time in an accessible mailbox.

If you are mailing a check, take it straight to the post office.

If you are using a USPS blue mailbox, drop your check prior to the last pickup of the day. Even better, take it inside and drop it in the outgoing mail slot.

Monitor your bank account often.

Make it a practice to monitor your checking account. I’m a fan of maintaining a check register

Monitoring your checking account is important so that any issues can be caught and dealt with early.

Ensure paper checks clear for the intended amount. Take the extra step of clicking on the check image to ensure the payee is correct.

Switch to duplicate checks

Since the signature will be intact on a washed check, a duplicate check is a good first step to assuring the bank the check was not received and cashed by the intended recipient.

A duplicate check also serves as a reminder of to whom and for what amount the check was actually written.

Keep a minimum amount in your checking account.

Common advice is to link your savings account to your checking account and allow automatic transfers if you overdraw.

However, if you keep a large sum in either, both accounts could end up being emptied.

Keep enough in both to cover the checks you write and move the rest of your money to a savings account not linked to your checking account.

Set up alerts for your checking account.

Many of us use alerts for our credit cards. Take the time to set up checking account alerts as well.

Use a black gel pen to fill out checks.

If you’re like me, finding a pen, any pen, is a challenge. Finding a specific pen could prove impossible.

However, a black, gel-tipped pen is more difficult to wash than normal ink and probably worth keeping handy.

And, for goodness sakes, make sure you aren’t using erasable ink.

If you are a victim of check washing, immediately take steps to protect yourself.

Immediately notify the bank and see what steps you need to take to secure your account.

File a complaint with the post office.

File a police report. When you file the report, ask the police if there are additional steps that need taken.

Freeze your credit.