What Is Check Washing? How To Protect Yourself From This Mail Scam

Check washing is a type of check fraud in which thieves steal a mailed check and chemically alter the payee name, dollar amount or both before cashing or depositing it. The scheme is becoming more common alongside increased mail theft. Here's how check washing works, why it's rising, how to protect your checks and what to do if you become a victim.

Key Takeaways

• Check washing is check fraud by chemical alteration. Thieves steal a mailed check, use acetone or bleach to erase the ink, then rewrite the payee and dollar amount while keeping your real signature.

• Mail theft is driving a nationwide spike. In the six months after its February 2023 alert, FinCEN logged 15,417 reports from 841 financial institutions totaling more than $688 million in reported suspicious activity — spanning every state, Washington, D.C., and Puerto Rico.

• Most stolen checks are altered and cashed. FinCEN found 44% of stolen checks were altered and deposited, 26% were used to make counterfeit checks and 20% were fraudulently signed and deposited.

• Prevention comes down to limiting exposure. Use a black gel pen, hand outgoing mail to a postal carrier or take it inside a post office, turn on USPS Informed Delivery and transaction alerts, and pay bills electronically when you can.

• Act fast if you're a victim. Contact your bank first, then report to the U.S. Postal Inspection Service at 1-877-876-2455 or uspis.gov/report, file a police report and place a free fraud alert with one credit bureau.

• You generally have a tight window to report. Customers typically have up to 30 days from the statement date to flag an unauthorized alteration, though deadlines vary by bank and state — so review statements weekly.

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How Check Washing Works

Check washing works in four steps:

1. A thief steals a mailed check from a home mailbox, a blue USPS collection box or a postal carrier.

2. They use a chemical such as acetone or bleach to erase the handwritten ink.

3. They rewrite the payee name and dollar amount while leaving the original signature intact.

4. They cash or deposit the altered check themselves or give it to a recruited “money mule.”

A washed check may look legitimate to a bank because the routing number, account number and account holder's signature aren't changed. The thief can redirect the payment without forging a new signature.

They often deposit these checks through mobile banking apps or ATMs to avoid the scrutiny of a teller.

A money mule receives stolen funds in a bank account and transfers them for someone else. The extra account can make the funds harder to trace back to the person behind the scheme.

Why Check Washing Scams Are Rising

Check washing scams are rising as criminals increasingly steal checks from home mailboxes and blue USPS collection boxes, sometimes with stolen or copied USPS master keys to open multiple boxes.

The Financial Crimes Enforcement Network (FinCEN) reviewed six months of activity after its February 2023 mail theft alert and released its findings in September 2024. It received 15,417 reports from 841 financial institutions involving more than $688 million in reported suspicious activity, not confirmed losses. Of the stolen checks described in those reports, 44% were altered and deposited, 26% were used to make counterfeit checks and 20% were fraudulently signed and deposited.

The reports included activity in every state, Washington, D.C., and Puerto Rico, so it’s worth taking a few extra precautions whenever you mail a check.

How To Prevent Check Washing

To prevent check washing, limit the time a check spends in transit or sitting somewhere exposed.

If you make only one change, pay your bills electronically instead of mailing checks whenever possible. But no single tip prevents check washing on its own, so use as many as you reasonably can to protect your checks.

What To Do If You're a Victim of Check Washing

The telltale sign is that a check you mailed was cashed, but the intended recipient never received the payment.

If you suspect check washing, start the recovery process right away to limit further damage. Follow these steps in order:

1. Contact your bank or credit union immediately. Report the fraud and ask what it can do to recover the money. If the investigation will take time, ask whether the bank can temporarily credit your account. Request images of the check and ask whether the account should be frozen or closed. The bank may require an affidavit.

2. Report the theft to the U.S. Postal Inspection Service. File a report at uspis.gov/report or call 1-877-876-2455 so postal inspectors can investigate.

3. File a local police report. Save the report number and copies of any documents because your bank or insurer may request them.

4. Place a fraud alert on your credit reports. Contact Equifax, Experian or TransUnion. You only need to contact one bureau for an initial fraud alert because it must notify the other two.

5. Continue monitoring your accounts and credit. A stolen check exposes your name, address, routing number and account number. Watch for additional altered checks, unauthorized withdrawals or unfamiliar accounts.

Tell the intended recipient what happened, too. If the check was for a bill, ask how to handle the unpaid balance while the bank investigates.

FAQ

How can you tell if a check has been washed?

A check may have been washed if its cleared image shows a payee or amount different from what you wrote. After it clears, your bank may provide images of the front and back through its website or app. Look for unfamiliar handwriting, smudging, discoloration or an endorsement you don’t recognize. Some washed checks show no obvious damage.

Will my bank refund me if a check I mailed gets washed?

Possibly, but a refund isn’t automatic. Your bank may investigate the alteration and whether you reported it on time. Customers generally have up to 30 days from the statement date, but the deadline varies by state, bank and account agreement. Ask when you can expect a decision. Ask the bank to reverse any related fees if it approves your claim.

Is check washing a crime?

Yes. Check washing can lead to charges for mail theft, forgery, bank fraud or identity theft. Someone who knowingly deposits a washed check or moves the proceeds could also face charges. Mail theft is a federal crime, so the U.S. Postal Inspection Service (USPIS) and local police will usually investigate together, and federal prosecutors handle the charges. Specific charges and penalties depend on the case. 

Does paying bills online instead of mailing a check prevent check washing?

Yes, as long as the payment stays electronic. Some bank bill-pay services still print and mail a check, so check with your bank on how yours will be sent. But digital payments are not risk-free because they are still exposed to phishing and account takeovers. Stick to the company's official site and turn on multifactor authentication where you can.

Key Terms

• Check washing: A form of check fraud in which a thief steals a mailed check, chemically erases the handwritten ink and rewrites the payee name, the dollar amount or both before cashing or depositing it.

• Mail theft-related check fraud: The broader crime category FinCEN tracks, covering checks stolen from mailboxes or USPS collection boxes that are then altered, counterfeited or fraudulently deposited.

• Money mule: A person who transfers illegally acquired money on behalf of, or at the direction of, someone else, often to make stolen funds harder to trace. Knowingly acting as a mule can lead to criminal prosecution.

• Fraud alert: A free notice on your credit reports that tells businesses to verify your identity before opening new credit. It lasts one year, and you only need to contact one bureau, which must notify the other two.

• USPS Informed Delivery: A free U.S. Postal Service tool that emails you images of mail scheduled to arrive, so a missing check becomes an early warning sign.

• Endorsement: The signature or stamp on the back of a check authorizing it to be deposited or cashed; an unfamiliar endorsement can signal a washed check.

• Affidavit: A sworn written statement your bank may require to document a fraud claim during its investigation.

Sources

• FinCEN — Financial Trend Analysis on mail theft-related check fraud (news release, Sept. 9, 2024)

• FinCEN — Financial Trend Analysis full report (PDF)

• OCC HelpWithMyBank.gov — Time limits for reporting check forgery and alterations

• FTC Consumer Advice — Is a credit freeze or fraud alert right for you?

• FBI — Arizona 2020 Money Mule Initiative (money mule definition)

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