Grundy Bank shares tips to prevent check fraud

Check fraud has been surging across Illinois, with criminals using elaborate and organized methods to target consumers and businesses. In partnership with the Illinois Bankers Association, Grundy Bank has some tips for consumers to protect themselves.

Check fraud is one of the most common forms of identity theft. Criminals target their victims with sophisticated schemes that can involve a legitimate payment request, a blank check stolen from a checkbook, a previously paid or canceled check found in the garbage, or a check placed in the mailbox to pay a bill.

In addition to wiping out bank accounts, this form of identity theft also can tarnish the victim’s credit report.

Criminals use multiple schemes to access consumers’ money. One type of fraud that’s become increasingly frequent is called “check washing.” This happens when a criminal steals a check and uses chemicals to remove the ink, changing the payee names and dollar amounts and then cashing them in for their own benefit.

Another type of check fraud consumers should be on the lookout for is the use of fake checks, which often are used to perpetrate overpayment scams.

“With this dramatic increase of check fraud in Illinois, it is imperative that individuals take steps to protect themselves,” said Randy Hultgren, president and CEO of the Illinois Bankers Association. “These tactics are constantly evolving, and the best way to protect your hard-earned money is to be aware of these ploys and take steps to avoid fraud before it happens.”

Data from the Financial Crimes Enforcement Network, a bureau of the U.S. Department of Treasury, shows that at least 23,949 Illinois consumers and businesses fell victim to check fraud in 2022. This is a 86% increase from 2021, and a 347% increase over the past decade.

It’s estimated that the average loss per check fraud incident is $2,412. These losses can be especially detrimental to families struggling to get by amid high inflation or small businesses seeking stability after years of pandemic-related symptoms.

There are steps that consumers can take to protect their checkbook, including:

· Ordering checks from a reputable source

· Properly disposing of checks

· Safeguarding checks and account information

· Using long-lasting black ink that is more difficult to alter

· Tracking and monitoring bank accounts regularly

· Filling out checks properly and completely while avoiding abbreviations

· Mailing checks at the post office instead of using mailboxes

“Stay vigilant when sending out checks, remain mindful of all your financial accounts, and stay informed about fraud prevention tips to safeguard yourself and your finances,” said Kevin Olson, president and CEO of Grundy Bank. “Awareness and caution are key in protecting your financial well-being from potential threats. Remember, it’s better to be safe than sorry when it comes to your personal finances.”

If you suspect you have fallen victim to check fraud, Grundy Bank urges you to contact your bank immediately and report the incident to local law enforcement authorities.

For information about security features and safety tips, visit Illinois.bank.