Just one more thing to worry about—this time, it’s about your checkbook. I know most of you probably don’t even write checks anymore. These days, most transactions are handled electronically, and that comes with its own set of risks. For example, earlier this year, someone got ahold of my credit card information and purchased a $1,000 ticket to Hawaii. We know credit cards aren’t completely safe, but a checkbook should be, right?
Not so.
Whether you write a check in pencil or pen, it can still be altered. I discovered this at the end of the year while reading the Opinion Section of The Wall Street Journal. The column was written by a Washington, D.C. attorney—someone who clearly knows the law. Let me share some excerpts from the piece:
“For the second time in three years, my wife and I have been victims of banking fraud—more specifically, check tampering, sometimes called check washing. Some months ago, we made a tax payment to the District of Columbia, where we live. We sent a check for tens of thousands of dollars to the D.C. Treasury.”
This immediately made me think of some of my older clients who make quarterly tax payments to the IRS and state tax agencies. These agencies often still prefer checks, and using a debit card can come with a hefty 3% processing fee.
The attorney continued
“After filing the required tax return, we received an ominous notice from the D.C. Treasurer’s office stating that we were delinquent. We were shocked to discover that the check, which we had made payable to the D.C. Treasurer, had been visibly altered to be payable to an individual—and had nonetheless been cashed by our bank.”
How could this happen? They wrote the checks, mailed them in plenty of time, and yet they were still considered delinquent. The answer? Their checks had been “washed.”
I recently learned that you can purchase special pens designed to prevent this very issue. If you use one of these pens, it makes the ink resistant to erasure or alteration. I hadn’t even realized this was a potential problem until now.
The attorney went on to say:
“We foolishly assumed there would be quick action. More than five months later, to our knowledge, no one has been charged…The D.C. Treasurer’s office waived penalties and interest on our ‘tax delinquency’ but has made only modest efforts to find the perpetrator.”
In fact, the lawyer and their spouse had to threaten legal action before the bank finally refunded their money.
Tips to Protect Yourself
Here are some suggestions to safeguard your checks, especially during the holiday season when you might be mailing payments to children or nonprofit organizations:
- Use special pens: These pens are designed to prevent check washing by making the ink tamper-proof.
- Secure your mailbox: We use a locked mailbox at home instead of a traditional flip-open style. With curbside mail pickup, you’re relying on luck that no one with sticky fingers will grab your mail.
- Be cautious when mailing: Instead of leaving outgoing mail in the curbside box, we either drop it off at the post office or hand it directly to a postal worker.
Being aware of check washing and taking the proper precautions can help ensure you don’t become a victim. Stay vigilant and protect yourself from this growing risk.
Leval, G. (2024). The Authorities Shrug at Bank Fraud. The Wall Street Journal, A15.
