Risk of Mailed Check Theft on the Rise in the U.S.

The practice of mailing checks in the United States is increasingly posing serious security risks. According to a report by The New York Times, a 63-year-old retiree mailed a check worth several thousand dollars to pay taxes, only to find that the check was stolen, altered, and cashed, leaving the taxes unpaid. When the victim sought compensation from their bank, their claim was denied due to a delay in reporting the issue.

This incident highlights the vulnerability of traditional payment methods in the face of modern criminal tactics. While mailing checks remains a common payment method in the U.S., its safety is rapidly eroding.

Three Major Fraud Techniques

Crimes targeting mailed checks generally fall into three main categories.

First, there is “fishing,” where criminals physically steal checks from street mailboxes. Adam Rust, director of financial services at the National Consumer Law Center, explains that offenders use long tools with adhesive pads to pull mail out of mailboxes. This method is relatively low-tech and widely practiced.

Second, more organized crime groups engage in large-scale theft. They steal multiple checks, make copies, and sell them online. This creates the risk of misuse, even if the original checks are delivered to their intended recipients.

Third, the most sophisticated method is “check washing,” which involves chemically erasing the payee’s name on stolen checks and rewriting it with a fraudulent name. The amount can also be altered to a higher sum before the check is cashed. In the retiree’s case mentioned earlier, it’s highly likely that the payee’s name was modified using this technique.

Bank Compensation and Reporting Deadlines

Further complicating the issue are the terms of bank compensation policies. On the website of the victim’s bank, Schwab, it is stated that losses from unauthorized activities will be compensated. However, the fine print specifies that such compensation is contingent upon timely reporting of unauthorized activities. It also states that failure to report in a timely manner absolves the bank of responsibility for additional losses.

Scott A. Anchin, Senior Vice President of the Independent Community Bankers of America, notes that banks typically require customers to report unauthorized transactions within at least 30 days, and sometimes up to 90 days, from the time the transaction appears on their account statements. If this timeframe is exceeded, victims are unlikely to receive compensation. Since mailed checks often take time to arrive, and theft may go unnoticed for weeks or even months, this increases the risk of missing the reporting deadline.

Expert Recommendations for Avoiding Risk

Adam Rust asserts that “no one should be mailing checks” as the most reliable preventive measure. If one must write a check, he recommends either delivering it in person or sending it from a post office counter rather than a home mailbox or public drop box.

The American Bankers Association advises using gel ink pens when writing checks. Gel ink is resistant to chemical erasure, making it more difficult for criminals to alter checks. In contrast, regular ballpoint pen ink can be easily removed with solvents, making gel ink a practical countermeasure.

Additionally, utilizing a bank’s online bill payment services is considered the safest alternative. These services process transactions electronically within secure banking systems, eliminating the risk of physical theft.

The U.S. federal government is also transitioning from paper checks to digital payments for benefits and tax refunds. The government has stated that electronic payments are safer, and this trend is expected to accelerate in the future.

Editorial Opinion

In the short term, individuals who continue to mail checks must recognize the heightened risk of fraud and should transition to online payment methods as soon as possible. The strict deadlines for bank compensation underscore the urgent need to improve financial literacy, as delays in reporting can lead to denied claims. Older adults, in particular, may review financial documents less frequently, making them more vulnerable to delayed detection and, consequently, greater risk.

In the long term, while checks remain a traditional payment method in the U.S., they can no longer be considered a secure option. Although checks are less commonly used in Japan, similar risks could arise in cases of international transfers or business transactions involving checks. While the shift to digital payments seems inevitable, it is also crucial to address related concerns, such as the digital divide and privacy in an increasingly surveilled society.

As an editorial team, we pose the question: Why, even in 2026, do physical payment methods like checks still persist? How can the banking industry redesign its systems to better balance customer protection with risk management? This issue is not merely about financial crimes; it is a prime example of the systemic vulnerabilities during the transition from analog to digital systems.

References

• Are Checks Sent Through the Mail Vulnerable to Theft? - Slashdot — Published on June 28, 2026
• Related reporting from The New York Times (Syndicated via Slashdot)