Understanding & Avoiding Fraudulent Checks
Paper checks may feel old-school, but crooks still chase them because the payoff can be huge. Industry groups say 80% of U.S. companies dealt with a fraud attempt last year, and 65% saw it hit their checks. Losses tied to check fraud are on pace to top $30 billion in 2024 if nothing changes.
1. What Counts as a "Bad" Check?
| Type | How scammers use it | Red flags |
|---|---|---|
| Counterfeit | Printed from scratch to look real | No watermarks, fuzzy logo, odd routing # |
| Stolen | Taken from your mailbox or checkbook | Torn envelope, recipient never got it |
| Washed/Altered | Ink lifted, payee or dollar amount changed | Smudged text, heavy ink spots, uneven numbers |
Why the money shows up so fast: By law (Reg CC), credit unions must release part of most deposits within one business day - even before the check truly clears. If the check later bounces, the member, not the credit union, usually covers the loss.
2. Popular Check Scams in 2024-25
- Overpayment on Marketplace Sales - Buyer "accidentally" pays too much, then wants a refund.
- Mystery-Shopper / Work-From-Home - You're sent a "paycheck" and told to send some funds back.
- Fake Prize or Lottery - You must "pre-pay taxes or fees" with part of the check.
- Mail-Box Theft & Check Washing - Thieves steal mail, erase ink, and rewrite checks for bigger amounts. Postal Inspectors recover over $1 billion in fake or altered checks each year.
- Remote-Deposit Double Dip - One photo deposit to two different institutions.
3. Spotting a Scam Check
| Look at | What you should see |
|---|---|
| Security marks | True watermark, micro-print border, or heat-sensitive icon. |
| Written vs. numeric $ | They must match exactly, with no odd spacing or fonts. |
| Routing & account # | Use your credit union's ABA tool or website to confirm numbers. |
| Sender info | Search the phone number online; don't trust what's printed. |
4. Seven Easy Ways to Protect Your Account
- Use Mobile Deposit or drop mail inside the Post Office. Skip outdoor boxes after dark.
- Write checks with a gel pen. The ink soaks in and is harder to wash.
- Sign up for USPS Informed Delivery® to see what should hit your mailbox each day.
- Confirm before acting. Call the issuer using a trusted number you find yourself.
- Wait 7-10 business days before spending money from any check you don't know well.
- Set up account alerts in online banking: we'll text or email you about large withdrawals fast.
- Use safer options - ACH, your Andrews FCU Visa® Debit Card, or Zelle® - ”yet stay alert for scams there, too.
5. If You Think You've Been Scammed
- Call Andrews Federal right away (800-487-5500). We can place holds or start a dispute. Another option is to send a Secure Message from Digital Banking.
- File a police report and keep a copy.
- Report to federal agencies:
- Get free reports from all three credit bureaus at AnnualCreditReport.com. If anything looks suspicious, place a fraud alert right away.
Remember: NCUA share-insurance protects your deposits but not losses from fraud. Acting fast is key.
6. Extra Help for Our Business Members
- Positive Pay - We match every check presented against the file you upload.
- Dual controls - One employee issues checks, another balances the account.
- Move more payables to ACH to shrink the number of checks in circulation.
Quick Takeaways for Members
- Check fraud could hit $30 billion this year without better safeguards.
- Even when funds look "available" you're on the hook if a deposited check later bounces.
- Mobile deposits, gel pens, and smart mailing habits block most scams.
- If trouble strikes, contact your credit union and law enforcement right away.
Keeping your money safe is a team effort - your vigilance plus the tools and protections Andrews Federal provides. If you have any questions, stop by a branch, call us, send us a secure message in digital banking or visit the Security Center.
