THE REVERE ADVOCATE – FRIDAY, JANUARY 31, 2025 Page 11 Mail Theft-Related Check Fraud is on the Rise T he FBI and USPIS are warning that check fraud is on the rise, with a signifi cant volume enabled through mail theft. Suspicious Activity Reports related to check fraud have nearly doubled from 2021 to 2023. Fraudsters take advantage of regulations requiring fi nancial institutions to make check funds available within specifi ed timeframes, which is often too short a window for the consumer or fi - nancial institutions to identify and stop the fraud. As a result, the compromised checks clear, and the funds are withdrawn by the criminal participants before the fraud is detected. Obtaining the Checks Fraudsters gain access to legitimate checks and sensitive fi nancial data by stealing mailed checks from USPS facilities or during delivery to the intended recipient. Check theft occurs several ways. Preparing/Altering the Checks for Deposit To make the checks appear legitimate, fraudsters use check washing or other check “cooking” techniques to alter checks or create counterfeits. In other instances, checks are unaltered and deposited with forged endorsements. Check washing involves the use of chemicals to physically alter the check, typically altering the original payee and fi - nancial amount. Check cooking involves the digital manipulation of an image of a stolen check. Using readily available photo editing software and high-tech printers, fraudsters can manufacture checks. Check cooking allows fraudsters to manufacture multiple checks from a single check image. Often these checks are written for smaller amounts which can go undetected for longer periods of time by escaping the scrutiny or visibility of a larger check amount. Depositing the Checks Stolen checks are deposited, often by a collusive account holder who is recruited by the fraudster or sold online for a fraction of the face value to other criminal actors who deposit the checks. In many cases, financial institutions, consumers, and law enforcement agencies are not aware of the fraudulent activity until after funds have been illicitly withdrawn. Who is Harmed by Check Fraud? Businesses Businesses could experience disruption to business activities and reputational harm due to overdue or missed payments or delays or disruption in fi nalizing payments when account details are compromised. Consumers Consumers can experience impacted credit scores for late payments for bills, account closures, stop payment fees for other outstanding checks, missed interest from refund checks, compromised personally identifi able information (PII) which may also be sold in subsequent fraud schemes, and loss of assets or investment money. Victims of fraud are often refunded some of the charges, but refunds are often delayed until investigations are complete. Government Entities Funds intended for citizens are intercepted and altered or forged, resulting in government funds being dispersed incorrectly. It can be a time intensive process to investigate and reissue payments to the rightful recipients of intercepted checks. How to Protect Your Mail • Pick up your mail promptly after delivery. Do not leave mail in your mailbox overnight or for long periods of time. • If you are heading out of town, submit a USPS Hold Mail™ request asking your local Post Offi ce to hold your mail until you return. • Sign up for Informed Delivery® at USPS.com to receive daily email notifications of incoming mail and packages. • Contact the sender if you do not receive a check, credit card or other valuable mail you are expecting. • Consider buying and using security envelopes to conceal the contents of your mail. • Use the letter slots inside your local Post Offi ce to send mail. If using a blue USPS collection box, be sure to drop your mail as close to the posted pickup time as possible and before the last collection of the day. MAIL THEFT-RELATED | SEE Page 17
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