A woman in Georgia once received an email from someone interested in purchasing furniture from her late aunt’s estate sale.

Shortly after, she received a check for twice the agreed amount, with instructions to pay the difference to a moving company and keep the rest "for her troubles."

Sounds too good to be true? It was. A Wells Fargo banker spotted red flags—the name on the check didn’t match the emails, and the address was in a different state than the buyer claimed. Upon investigation, the check was found to have already been cashed.

Dear Lykkers, scenarios like this are alarmingly common. Despite a decline in paper check usage by over 7% annually since 2018, reports of check fraud have nearly doubled from 2021 to 2022. Fraudsters continue to exploit low-tech methods like targeting mailboxes and older adults. Here’s how you can protect yourself.

Types of Check Crimes

Check Fraud

This involves stealing legitimate paper checks, often from the mail, and altering them:

Fraudsters use chemicals to “wash” the ink off checks, then rewrite them to themselves.

Endorsements and amounts may also be forged to steal funds.

Check Scams

According to the American Bankers Association, fake check scams are one of the most common methods fraudsters use to steal money:

Overpayments and Online Sales Scams: A buyer “accidentally” sends a check for more than the purchase price and asks for the difference to be refunded.

Lottery or Prize Scams: Victims receive a check for fake “winnings” and are instructed to return part of the money for taxes or fees.

Job Scams: Fake checks are sent as signing bonuses or upfront payments, with instructions to send back a portion. Once the check bounces, the victim is left liable for the funds.

Easy Ways to Avoid Check Fraud

Joe Bernardo, Wells Fargo Head of Fraud & Claims Operations, recommends these tips:

Use secure digital payment methods like mobile or online banking.

Set up account alerts to monitor activity.

Write checks with non-erasable black ink.

Keep checks in a secure place.

Avoid accepting checks from unknown individuals.

Never cash checks for more than the expected amount.

Verify the purpose of any check you receive. If it feels suspicious, trust your instincts and avoid rushing into decisions.

Drop mailed checks at the post office instead of leaving them in a mailbox. Confirm with the recipient that they received your check. Regularly review account statements and check images to spot unauthorized transactions.

Common Fraud and Scams: How to Stay Safe

Tax Fraud

Tax season is prime time for scams. Stay alert for red flags with advice from fraud experts.

Cybercrime

One-third of Americans have experienced cybercrime. Learn simple steps to reduce your risk.

Elder Fraud

Protect older adults from scams with expert tips for caregivers and family members.

Shopping Scams

During the holiday season, watch for cyber scams and know how to respond if you’re targeted.

Romance Scams

Romance scams are rising. Learn how to recognize red flags and avoid falling victim.

Stay vigilant and proactive to protect yourself and your loved ones from check fraud and scams.