Paper checks linked to mail theft, robberies

Sure, you probably don’t use paper checks for most things. But do you return payments to medical providers and insurance companies by mail? Pay by check for the random parking ticket or your child’s piano lessons? Now’s a good time to stop: Check fraud related to mail theft is trending nationwide in the US, according to a February alert from the Financial Crimes Enforcement Network. And the robberies of mailboxes are also on the rise.

This is due in part to the effects of the pandemic, when thieves have been targeted by government relief checks in the mail. “Fraudsters just went back to tried and tested potential attack factors that seemed to work,” said Michael Bruemmer, head of global data breach solution at Experian.

The US Postal Service is vulnerable and thieves who have access to your checks can change the amount and take that money directly from your bank account. And then it can take weeks to get the money back.

“It’s definitely a life-changing event when you send a check and it gets intercepted,” said Mary Ann Miller, executive fraud and cybercrime consultant and vice president of customer experience at consumer identity company Prove. “That can take all the money out of your account at once.”

Here are some steps to protect yourself from check fraud – and what to do if you’re a victim.

USE PAYMENT ALTERNATIVES

Look for ways to pay your bills that don’t require using mail. For example, check your statement for online payment instructions. “We’re starting to see more online options,” says Miller. “Some medical providers, such as One Medical, even have a very nice option to pay via a mobile app, along with all your medical information. I find it super convenient and modern.”

If you’re paying individuals, ask if they accept electronic payments through PayPal, Venmo, Zelle, or another cash app. “There’s really no need to write checks today,” says Bruemmer.

Do you work with a supplier that does not offer an easy way to pay online? Call and ask if you can pay by phone. “Paying over the phone through the IVR – interactive voice response – or a live customer service representative is definitely preferred,” says Miller. “Just be sure to call the correct number for the utility or medical provider.”

And in general, experts recommend using credit cards to make transactions whenever possible. “You have a lot more protection globally with a credit card, if you travel internationally or if you buy things online,” says Derek Miser, an investment advisor and CEO at Miser Wealth Partners in Knoxville, Tenn.

SEND CHECKS SECURELY

If you must send a check, take steps to reduce the likelihood of financial chaos. If it’s a large payment, consider using a shipper like UPS or FedEx. “They accept checks and provide a tracking number,” says Miller.

If you use the US Postal Service, mail your payment in a security envelope and take it directly to the post office, bypassing mailboxes and mail carriers. You can also write your checks with a black gel ink pen to make it harder for criminals to wash your checks (the ink soaks into the paper).

If you’re sending a check to someone, ask them to let you know as soon as they receive the check. That way, if too much time has passed and the recipient hasn’t gotten the check, you can place a stop payment, Miller suggests.

One final safeguard: keep enough money in your checking account to pay the bills, but put the rest somewhere else, such as a linked savings account. The smaller your check account balance, the less money is accessible to someone who forges a check in your account.

TAKE ACTION IF A CONTROL GOES WRONG

If you suspect that a check has fallen into the wrong hands, call your bank immediately. Then file a police report and contact the person or company that would receive the check. If you made a payment, you may need to make arrangements to make another payment to avoid late fees or interest.

Be warned: processes for returning fraudulently lost funds to bank accounts vary by institution and some timelines are lengthy. “The client is generally made whole, but that can take months,” says Miller.

In the meantime, consider putting a fraud alert on your credit reports in case someone tries to open a loan in your name, and take an eagle eye over your bank statements and credit reports. Please note that each year at AnnualCreditReport.com you are eligible to receive a free credit report from each of the three major reporting agencies.

Some banks also allow you to set up check checking, from which you receive text messages or alerts when transactions are collected above a certain amount.

“I would say now that just about every bank has some form of oversight,” says Bruemmer. “Take advantage of those free alerts you receive when you’re a member of a financial institution.”

This column was provided to The Associated Press by the personal finance website NerdWallet.