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.