Whitewashing Checks: An Old Scam with a Modern Twist

Even though digital payments have become more common, many people still use physical checks, which are the target of a form of fraud called whitewashing. While the technique itself isn’t new, it remains effective enough that both individuals and businesses should be aware of how it works and how to prevent it.

What Is Whitewashing?

“Whitewashing happens when scammers use special chemicals to remove the ink and alter both the payee and amount on a check.”¹ This process allows them to erase key details such as the payee name and dollar amount, while leaving the signature untouched.

Once the check has been “washed,” the fraudster rewrites it, making it payable to themselves and often increasing the amount. Because the original signature is still valid, the altered check can sometimes slip through initial processing.

Whitewashing scams begin with access to physical checks. Criminals commonly obtain them by stealing them from places like residential mailboxes, intercepting outgoing payments, or targeting public mail collection boxes, especially overnight or on weekends when mail may sit unattended.

Simple Ways to Protect Yourself

Reducing your risk starts with limiting opportunities for criminals to access your checks. Whenever possible, mail payments directly from a secure location like a post office rather than leaving them in an unsecured mailbox or USPS Dropbox. Using a gel pen when writing checks can also help, as the ink is more resistant to chemical alteration. It’s also worth considering alternatives to paper checks, such as secure digital payment methods offered by your financial institution. In addition, regularly reviewing your account activity ensures that any suspicious transactions are caught and reported quickly. “We’re finding that most fraud is happening with check writing. Checks can get stolen, altered or lost in the mail. A lot of businesses are switching to different alternatives for check writing, which CNB offers, such as Bill Pay, ACH Payments, and Wires.” – Susan Bunn, VP, Treasury Management Sales Specialist. CNB also offers ways to keep an eye out for suspicious check activity with Positive Pay and Reverse Positive Pay.

What to Do If You Suspect Fraud

If you believe a check has been altered or fraudulently used, time is critical. For example, a man named Todd wrote a $10,000 check to the IRS and months later was informed they never received payment. He filed a fraud claim with his bank, and they rejected it because it had been more than 30 days since the check was cashed.² It’s important to monitor your accounts and immediately contact your financial institution if you see suspicious activity. You may also need to file a report with local law enforcement and notify the intended recipient of the original payment.

Staying Ahead of the Threat

Whitewashing checks may be an old tactic, but it continues to evolve in today’s environment. Staying informed and taking a few preventative steps can go a long way in protecting your finances. If you have questions about safer payment options or fraud prevention tools, reach out to your local CNB Office. We’re committed to helping you stay one step ahead of fraud.

¹ https://www.identityguard.com/news/check-washing 

² https://www.cbsnews.com/news/check-washing/