Mail Theft and Check Fraud are on the Rise
Conventional fraud tactics like mail theft and check fraud are experiencing a resurgence. In this part of our Fraud Education series, we’ll dive into what’s driving the comeback of these traditional methods, the tactics to look out for, and how to protect yourself against mail and check fraud.
Why check fraud is coming back.
There’s a lack of prosecution of these crimes, and several other factors play into the resurgence of mail and check fraud, including:
- COVID-19
The pandemic caused a loss of jobs and an increase of paper stimulus checks, resulting in a significant uptick in traditional schemes like check washing and check fraud overall. - Online support for offline fraud
Social media, particularly ultra-private messaging platforms like the Telegram app, are boosting all types of fraud. The anonymous and encrypted nature of Telegram allows fraudsters to not only sell stolen check information and personal data openly and anonymously… it offers criminals a platform for training other aspiring fraudsters. Cybersecurity firm Q6 Cyber found 30 channels on Telegram dedicated to providing tips on committing financial fraud. One group alone had at least 20,000 members.1 - Flaws in the U.S. Postal Service
A 2020 audit of the USPS found weaknesses, including ineffective management of arrow keys, which are basically mailbox master keys. Efforts are in the works to strengthen the system’s shortcomings, from making USPS collection boxes more secure to additional high-tech protection measures. However, there is no published timeline for when these improvements will go into effect.2
Old scams. New tricks.
How fraudsters go about stealing mail and checks in the first place:
- Fishing: Unlike digital phishing, “fishing” is a more hands-on approach to fraud. Criminals attach a sticky substance to a weighted object tied to the end of string, drop it into a mail collection box, and “fish” out the mail in search of checks and personal data.
- Arrow keys: Thieves steal these USPS universal keys and use them to open multiple mailboxes in a targeted area.
- Robbery: In 2021, there were 33,000 reports of mail carrier robberies. Other tactics include breaking into cluster mailboxes at apartments and condos and stealing mail from residential mailboxes that have the flag up.
Protect your mail, your checks – and yourself.
Put your outgoing mail in collection boxes as close to the indicated pickup time as possible or, even better, bring it inside the post office for mailing. If you must mail a check, go inside the post office, instead of using a blue mail collection box.
- Avoid leaving any mail in your mailbox overnight.
- Don’t raise the flag on your mailbox.
- Sign up for free Informed Delivery through the USPS.
- Use the USPS Hold Mail service or have a neighbor collect your mail when you go on vacation.
- Monitor your bank accounts and promptly report any suspicious activity.
- Use online bill pay instead of mailing paper checks whenever possible.
- When making out a check, avoid leaving large, empty spaces. Write out the amount so the words fill the entire allotted space and so the numbers completely fill the box.
- Avoid including unnecessary information on your checks, like your driver’s license number.
Revival of old-school fraud
Reported suspected fraud cases increased almost 100% from the previous year. The financial impact of such crime is estimated to be in the multi-billions – and it’s expected to climb even further.3 Check fraud alone is projected to cause $24 billion or more in damages in 2023.4
