As I mention in my presentations, try to limit writing checks and refrain from putting them into the mail system. This letter to the editor appeared in the Wall Street Journal recently and is a reminder of how the crime of check washing is a persistent threat.
“For the second time in three years, my wife and I have been the victims of banking fraud—more specifically, check tampering, sometimes called check washing.
Some months ago, we made a tax payment to the District of Columbia, where we live. We sent a check for tens of thousands of dollars to the D.C. Treasurer, in compliance with applicable rules. As required, we noted on the face of the check that it was a payment for taxes and deposited it in a U.S. Postal Service mailbox.
After filing a required tax return, we received an ominous notice from the D.C. Treasurer’s office that we were delinquent in paying our taxes. We sought and obtained a copy of our cashed check from our bank to prove that a mistake had been made.
We were shocked to discover that the check, which we had made payable to the D.C. Treasurer, had been visibly altered to make it be payable to an individual and had nonetheless been cashed by our bank.
We immediately filed a claim with our bank, providing meticulous details and documentation. We contacted the bank where the money from the check was deposited. We reached out to the office of the chief financial officer of the District of Columbia and met with officials in the D.C. Treasurer’s office. We filed a report with the D.C. Metropolitan Police. We sought the assistance of the U.S. Attorney for D.C., and we filed a complaint with the USPS.
Everyone we contacted expressed regret that we had been victimized by this fraud. All indicated that they would be happy to help us.
We foolishly assumed there would be quick action. In particular, we thought that the offender, whose identity is apparent on the face and endorsement of the altered check, would be promptly arrested and charged. We were wrong.
More than five months later, to our knowledge, no one has been charged. The Postal Service is investigating but thus far has only warned us not to send checks through the mail because, as they informed us, hundreds of checks are stolen each day. The Metropolitan Police has yet to respond. The D.C. Treasurer’s office waived penalties and interest on our “tax delinquency” but has made only modest efforts to find the perpetrator. Our bank agreed to investigate the matter, but only after months of demands and the threat of a lawsuit did it finally return our stolen money.
Fraud has become so common that it seems no longer to engender concern, anger or urgency. Law-enforcement agencies seem too overwhelmed by the sheer volume of scams to act. But a continuing failure to pursue the perpetrators of scams and frauds can only be the prelude to society’s moral decay. Our institutions must acknowledge and promptly rectify this abdication of duty.”