It may seem as though check-writing is becoming a lost art, but it remains a popular way to send money. A recent study from Abrigo, which makes fraud-prevention software, found that 61% of Americans still write checks.
If you’re among them, there are a few simple precautions you can take to avoid fraud and theft.
Check washing and ID theft
Check washing scams involve changing the payee names or the dollar amounts on checks and fraudulently depositing them. Criminals may also steal checks from mailboxes and use chemicals to remove — or "wash" off — the ink before rewriting it to themselves.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
To avoid falling victim, make sure to fill out all the required fields on a check. If possible, use indelible ink or a gel pen; gel ink is more difficult for criminals to “wash” off than ink from a ballpoint pen.
If a blank space appears to the right of the dollar amount you’ve written, draw a line through the space to help prevent crooks from altering or adding to the amount. Roxann Cooke, senior director of consumer banking at Chase, recommends that you never make a check payable to “cash,” which could allow anyone to deposit it. Instead, write the intended recipient’s name.
Also, avoid sharing too much of your personal information on a check. Don’t include your driver’s license number, Social Security number or anything else that a thief could use to steal your identity.
Mailing checks safely
If you’re sending a check through the mail, put it in a security envelope, which has a crosshatch pattern on the interior to mask the envelope’s contents. Or, if you use a standard envelope, wrap the check in a piece of paper before you place it inside.
Cooke suggests taking your check to a post office to mail it rather than putting it in your home mailbox, where a thief may be able to intercept it more easily. For extra protection — say, for a large payment — you can send the check by certified mail, which requires the recipient to provide a signature upon delivery.
Finally, always follow up with payees to make sure they've received your check.
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Related content
-
Tax Efficiency Mastery for Financial SuccessAs you build your wealth, tax considerations are going to become more important in protecting your earnings and staying in good standing with tax authorities.
-
IRS Has No Set Plan to Replace Old TechIRS What could old IRS technology mean for your federal tax return and cybersecurity?
-
High-Yield Bonds and Savings Ideas as The Fed Weighs a Rate CutAs the Federal Reserve mulls another rate cut, there is much to consider in order to maximize your gains.
-
Want to Quit? Check Your 401(k) Employer Match FirstHere are some factors to consider if you want to quick, but don't want to lose gains on retirement funds.
-
How to Make a Wedding Budget With Your FamilyTo avoid misunderstandings and sticker shock, it's worth sitting down and making a wedding budget with the whole family.
-
Is Leasing a Car Cheaper Than Buying? Know the CostsBuying a new car is far more expensive than it was just a few years ago, but as long as you lease, your car payments never end. Here's how to navigate the decision-making process.
-
17 Pesky Travel, Dining and Shopping Fees and How to Avoid ThemThere are plenty of random, unexpected fees when it comes to travel, dining and shopping. Here's how to avoid them.
-
A Guide to Your Credit Card StatementYour credit card statement holds key information about your card’s balance, interest rate and payment due date. It's generally considered a great way to keep tabs on your finances.
-
PLUS Loans Can Help Pay for College — at a CostWhat to know about PLUS loans: Parents can borrow up to the cost of a child’s education, but interest rates are steep.
-
Best Banks for TravelersBanking The best banks for travelers cut the cost of trips at home and abroad, and come with handy perks for those on the go. Read on for our top two choices.
