Check fraud involves illegally acquiring funds by manipulating or fabricating checks before banks detect the issue, by taking advantage of the float: money within the banking system that is briefly counted twice due to time gaps in registering a deposit or withdrawal. Criminals achieve this in a variety of ways; some commonly utilized tactics include:
- Counterfeit Checks: Fake checks designed to look like real business or personal checks.
- Check Washing: Using chemicals to erase the original details and rewrite the name of the payee or amount.
- Mail Theft: Stealing checks from residential mailboxes or USPS drop boxes.
- Remote-Created Checks: Checks generated without physical signatures, often via online or phone transactions.
- Mobile Deposit Fraud: Manipulating digital check images or depositing the same check multiple times using different accounts or devices.
Actions You Can Take to Avoid Check Fraud
Fortunately, there are straightforward and effective steps you can take to significantly reduce your risk of falling victim to check fraud. By being proactive and aware, you can safeguard your finances and personal information.
- Get your mail promptly after delivery. Don’t leave it in your mailbox overnight. If you’re heading out of town, ask the post office to hold your mail until you return. You can sign up for informed delivery on USPS.com to receive email updates of incoming mail and packages. If you don’t receive the mail you are expecting, contact the sender.
- When writing a check, use permanent gel pens so it is more difficult for a criminal to wash your checks. Don’t leave blank spaces in the payee or amount lines. Never include personal details such as your social security number, credit card information, driver's license number or phone number on checks.
- Check your bank account regularly to stay informed of all transactions. Early detection is key to minimizing the damage of fraud. Set up transaction alerts or push notifications through your bank’s mobile app so you can be immediately notified of any unusual or unauthorized activity.
- Southern Bank Digital Banking offers digital images of your cleared checks. Take a few minutes each month to review them. Make sure the payee name, date, and amount match what you wrote, and check the endorsement on the back to verify that the check was deposited or cashed by the intended recipient.
- Digital payments are often faster, more secure, and easier to track than traditional paper checks. Take advantage of Southern Bank’s mobile app, online bill pay services, or trusted peer-to-peer payment platforms (like Zelle) to send money safely. Always be certain you are at a legitimate website when making digital payments.
If anything looks suspicious, report it to Southern Bank at 855-452-7272 and your local police department immediately. In addition to these resources, you can report these situations to the Internet Crime Complaint Center (IC3) at https://www.ic3.gov/ and the Federal Trade Commission at https://reportfraud.ftc.gov/.
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