Stop check fraud
Still using paper checks?
Sure, you’re probably not using paper checks for most things. But are you returning payments to medical providers and insurance companies in the mail? Now is a good time to stop: Check fraud tied to mail theft is up nationwide, according to a February alert from the Financial Crimes Enforcement Network.
Here are some steps to keep yourself safe from check fraud — and what to do if you’re a victim.
1 Use payment alternatives Look for ways to pay your bills that don’t require using the mail. Check your statement for online payment instructions, for example. “We are beginning to see more online options,” says Mary Ann Miller, fraud and cybercrime executive advisor and vice president of client experience at consumer identity company Prove.
If you’re paying individuals, ask if they’ll accept electronic payment through PayPal, Venmo, Zelle or another cash app.
Working with a vendor that doesn’t offer an easy way to pay online? Call and ask if you can pay over the phone.
And in general, experts recommend using credit cards to transact, whenever possible.
2 Send checks safely If you must send a check and it’s a big payment, consider using a shipper like UPS or FedEx.
If you’re using the U.S. Postal Service, send your payment in a security envelope and take it directly to the post office. You can also write your checks using a black gel ink pen to make it harder for criminals to wash your checks.
If you’re sending a check to someone, ask them to let you know once they receive it. That way, if too much time has passed and the recipient hasn’t gotten the check, you can place a stop payment, Miller suggests.
3 Take action if a check goes awry If you suspect a check has fallen into the wrong hands, call your bank right away. Then file a police report and contact the person or business that was meant to receive the check. If you were making a payment, you may have to make arrangements to make another payment to prevent late fees or interest.
Consider putting a fraud alert on your credit reports in case someone tries to open credit in your name, and go over your bank statements and credit reports.