Personal checks: Are they safe or not?
Are you still using your checkbook? It may be time to release it and join the world of online payments.
Admittedly, I still have my old checkbook stashed away in a drawer (just in case) but the times I use it are rare these days. Working at the Better Business Bureau for 19 years has taught me to be on the alert for ways scammers can steal my money, and personal checks are now on the danger list.
A lot of personal information is on my checks: my name, address, signature, bank routing and account number. In addition, I may be asked to include my driver’s license number and date of birth or, worse yet, my Social Security number — all pieces of information a scammer can use to steal my identity! I began thinking about all the strangers who might be handling my check like the cashier, accounting department, and whoever makes the actual deposit — all this before it even arrives at the bank.
These days, it is easy for thieves to “wash” your check with software and write in their own name and amount to access your funds. And, if you’re still putting your outgoing mail in your mailbox for the postal carrier to take, you’re making it even easier for thieves who troll neighborhoods looking for the red flag signaling “good stuff in here.” This is especially dangerous if you’re paying your credit card bill because they will snag that information, too.
Convenience also has its price in this age of digital deposits. Sure, it’s easy to just snap a picture of a check to magically deposit it into the bank, but what happens if your tech-savvy grandson just tosses the check into the trash after making the deposit? Chances are, a dumpster-diver will fish it out and….
Beyond all of this, checks don’t offer the same protection as a credit card. For example, if you get scammed online and used your debit card to pay, that money is gone and trying to get it back will be hard if not impossible. Whereas, with a credit card, you can dispute the charge and the bank will investigate; if they find it is fraud, you won’t be liable. Also
be aware, if a thief steals money from your bank account, you must report it within two days or you could be on the hook for up to $500; if you don’t report it within 60 days, all your money could be gone with no recourse.
However, given all of this, it still may be wise to hang onto your checkbook. Some small businesses don’t accept credit cards or may charge an additional fee for using them so paying by check could still be worthwhile.
A few tips include:
• Keep your checkbook in a secure place
• Shred any old checks and checkbooks
• Write checks to a specific person or business, never “cash” in the payee line or leave it blank
• Track checks written, find out if they haven’t been cashed
• Monitor your bank accounts regularly and immediately report any suspicious activity.