Why you should stop using paper checks

Dear Liz: I had several checks stolen from the U.S. Postal Service. The thieves altered and cashed the checks. I immediately put holds on the checks. One check, however, was written out to one bank for $4,339 and then cashed through another bank. The first bank told me they were pursuing the second bank for payment, and that when they get reimbursed, I’ll get reimbursed. Recently I received a letter from the first bank saying that the other bank hasn’t responded so they consider the case closed. Basically, I’m out the money.

Answer: Check fraud is soaring even as the use of checks has declined. Thieves take signed checks from mailboxes and “wash” them with common solvents such as nail polish remover. Once the checks dry, they change the amounts and payees and then cash the altered checks.

If you report the problem to your bank promptly — typically within 30 to 60 days of your statement date, depending on state law — then you should be made whole.

You can start by making a complaint to the Consumer Financial Protection Bureau online at consumer finance.gov/complaint or by calling (855) 411-2372. The CFPB has a pretty good track record of getting companies to respond.

Also, please look into other payment methods. Electronic payments are much more secure.

How pension affects Social Security

Dear Liz: I have a friend who went through a horrible divorce. She worked for a school district that did not pay into Social Security but her ex was self-employed and did pay into the system. I advised her to apply for spousal benefits but she was told she was not entitled due to her pension. Is this right?

Answer: It’s unfortunate that your friend is struggling. But she’d be worse off trying to live on a spousal benefit from Social Security than she is now.

People who get pensions