Check washing is a type of fraud that occurs when a stolen check is treated with a chemical formula to remove its ink or “wash the check.” Then the check is rewritten with a higher amount, addressed to a new payee, and deposited.
In most cases, checks are stolen from the mail before they are washed and rewritten. As several local businesses have let us know that they have been victimized, we want to remind local businesses that one option to protect your company from check fraud is to use Positive Pay.
Positive Pay is a popular automated cash service that helps banks detect fraud by matching the company’s issued check with the check presented for payment. The dollar amount, check number and account number must all match, or the check is flagged and sent back to you for review. Click here for more information you can print, download and share.
If you are a victim of check washing, please contact us as soon as possible so we can assist. If you’d like to learn more about protecting yourself with Positive Pay, please call our Business Development team at 603.279.9256.
