Understanding the Threat
Did you know millions of dollars are lost to check fraud yearly? Whether through forged, altered, counterfeit, or stolen checks, fraudsters continually find new ways to breach financial security. But fear not, WestStar is dedicated to equipping you with the knowledge and tools to protect yourself from these threats. Arm yourself with the knowledge to protect your finances effectively.
Types of Check Fraud
- Forged Checks: Unauthorized individuals sign checks, often people you know.
- Altered Checks: Criminals modify legitimate checks, changing amounts or payee names.
- Counterfeit Checks: Fake checks that look like they are from real accounts.
- Stolen Checks: Checks stolen from mailboxes or offices, then used fraudulently.
Steps to Defend Yourself
- Secure Ordering: Ensure the safety of your transactions by ordering checks through WestStar's online banking platform or at our branches. Our checks can include advanced security features such as microprinting, holograms, and watermarks, which make them difficult to counterfeit or alter.
- Strategic Storage: Protect your financial tools by storing your checkbooks in a secure, locked location. Consider using a safe or a locked drawer, which provides an additional layer of security against theft.
- Minimal Personal Information: Reduce the risk of fraud by including only essential information on your checks. Avoid adding sensitive data, such as your Social Security number or full date of birth, which can be used for identity theft.
- Positive Pay for Businesses: WestStar offers Positive Pay, a service that matches the checks issued by your business against those presented for payment. Any mismatch is flagged, allowing you to take action before the check is cleared. This service is invaluable for businesses looking to prevent altered and counterfeit check fraud. Learn more about Positive Pay.
Daily Vigilance Practices
- Invest in Fraud-Resistant Pens: Utilize pens designed to combat check fraud. These pens use a special gel ink that penetrates the paper fibers, making them resistant to check-washing techniques. Brands like Uni-ball 207 and Pilot FriXion are widely recommended for their effectiveness. They are available at major office supply stores like Staples and Office Depot or online retailers.
- Monitor and Alert: Stay vigilant by regularly reviewing your account statements for any discrepancies. Set up alerts through your banking app or online account to notify you of any unauthorized transactions as soon as they occur.
Handling Outgoing Mail
- Secure Delivery: When sending checks by mail, opt for services that offer trackable delivery. This allows you to monitor your mail's whereabouts and ensure it reaches its intended recipient safely.
- USPS Informed Delivery: Enhance your mail security by signing up for USPS Informed Delivery. This service provides digital previews of your incoming mail and real-time tracking of packages, allowing you to identify any missing or tampered items promptly.
If Fraud Strikes
- Act Fast: Should you suspect any fraudulent activity on your account, contact WestStar immediately. We are equipped to secure your accounts swiftly and will guide you through the steps necessary for recovery, including how to file reports and replace compromised checks.
Glossary of Terms: Understanding Check Fraud
- Check Fraud: The unauthorized use of checks to obtain or divert funds illegally.
- Forged Check: A check on which the signature is not the account holder's.
- Altered Check: A legitimate check that has been altered, usually in the amount or payee, to benefit the fraudster.
- Counterfeit Check: A check created without the account holder's knowledge, designed to look like a legitimate check.
- Stolen Check: A check taken without permission and used fraudulently.
- Check Washing: A process where chemicals remove ink from a written check to alter the beneficiary or amount.
- USPS Informed Delivery: A service provided by the U.S. Postal Service that allows recipients to see previews of their mail and manage package delivery.
External Resources on Check Fraud Prevention
- Federal Trade Commission (FTC): Offers comprehensive consumer protection and fraud prevention guides, including actionable advice on recognizing and reporting check fraud.
- American Bankers Association (ABA): Provides resources and tips for consumers to protect themselves against financial fraud, focusing on banking best practices.
- U.S. Postal Inspection Service: Details safety measures for handling mail and preventing mail fraud, which can include stolen checks.
Learn More
For more detailed information on fraud prevention and to access additional resources, please visit our Fraud Center.
Frequently Asked Questions (FAQ) About Check Fraud
What is check fraud?
Check fraud involves the illegal use of checks to obtain or misuse funds unlawfully. It can include forged, altered, counterfeit, or stolen checks.
How can I prevent check fraud?
Ensure secure ordering and delivery of checks, use fraud-resistant pens, regularly monitor your account, and store checks securely. Employ services like USPS Informed Delivery to track your mail.
What should I do if I suspect check fraud?
Immediately report any suspicious activity to your bank. Provide details of the incident, and follow your bank's guidance on securing your account.
Can I recover money lost to check fraud?
Recovery depends on timely reporting and the specifics of the incident. Your bank can advise on recovery options based on their policies and the nature of the fraud.
How do I cancel a check?
Contact your bank immediately with the check number, date written, payee name, and amount. They will guide you through the cancellation process.
What is check washing?
Check washing is a form of fraud where details on a check are altered, typically after being chemically treated to remove original writing.