The U.S. Postal Inspection Service is warning consumers about check washing, in which fraudsters change payee names and dollar amounts on checks and fraudulently deposit them.
Details: The postal service’s law enforcement arm said it recovers more than $1 billion in counterfeit checks and money orders every year and encouraged consumers to take steps to avoid check fraud. Meanwhile, depository institutions are on pace to exceed last year’s record number of check-fraud reports, according to recent reporting.
ICBA View: ICBA encourages community banks to use:
Nacha’s ACH Contact Registry, which includes thousands of check contacts, to help address the dramatic rise in check fraud.
The Treasury Department’s Treasury Check Verification System to catch canceled, duplicate, or other problematic Treasury checks at the time of presentment.
Tips for filing Suspicious Activity Reports from the Financial Crimes Enforcement Network’s recent alert on fraud schemes.