Personal Finance, Bargains/Deals and My Misc Ramblings
I recently read an article from Los Angeles Times, dated May 6, 2007, written by David Colker regarding an old check scam called “check washing.” According to Mr. Colker, this check crime has been around for decades. With the advent of high tech crimes, the crime has taken a back seat in the past few years but most recently is back along with other check crimes. So how do those check thieves conduct the “check washing” crime?
What is “Check Washing.” Mr Colker stated that check washing is done where an ordinary check issued to John Doe is bathed in a chemical available at any hardware store and in just a few minutes it’s blank again and is now made out to David - who is a thief. Check washing erases the amount and the payee section but can keep the “signature” section intact! For example, if a check has been issued for $30 to person A, the thieves can turnaround and do “check washing” and voila, the check is now blank they can now re-issue the same check to themselves for $1,000.
For the most part, it is the banks who will suffer the lost, if the scam is reported to them within 30 days, which is the amount of time that they issue you a monthly statement. The bank will put the money loss back into your account. So for any reports beyond that date, the check account holder will be out of luck!
Tips to Prevent Being A Victim of This Crime: Here are some tips that Mr. Colker recommended so you won’t find yourself a victim of this scam:
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