Surge in Check-Washing Mail Fraud Threatens Taxpayers and Bill-Payers

In 2023, law-enforcement and postal agencies reported a sharp increase in check-washing, a scheme in which thieves intercept mailed checks, erase the original payee and amount with household chemicals such as bleach or acetone, rewrite the check to themselves, and cash it through banks’ automated processing systems. The fraud has targeted taxpayers, Social Security and unemployment recipients, and individuals who mail bill payments.

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Mail theft has been documented for decades, but the Postal Police Officers Association notes that high-volume mail theft has risen roughly 2,000 % since 2010, indicating a shift toward organized postal crime. The resurgence of check-washing reflects this broader trend.

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Reports of check fraud cited by the FBI and U.S. Postal Service nearly doubled between 2021 and 2022. High-volume mail theft is up roughly 2,000 % since 2010. The Washington Post described check-washing incidents as “climbing fast.”

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Key participants include Frank Albergo, president of the Postal Police Officers Association; the FBI and U.S. Postal Service; financial institutions such as Chase Bank; and victims such as a California couple whose IRS payment was altered and a Long Island woman who lost $16,000 despite precautionary steps. The Washington Post has reported on the phenomenon.

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The FBI has issued preventive tips, emphasizing prompt reporting of altered checks. The Postal Police Officers Association has warned that organized postal crime is expanding. Chase Bank initially applied a fraud-reporting deadline that left a California couple liable for $12,000 in taxes, interest, and penalties, but after media inquiry the bank refunded most of the amount.

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Critics note that strict fraud-reporting windows can leave victims financially responsible before banks can investigate. The Long Island case illustrates that even when recommended precautions—such as using gel ink—are taken, thieves can still succeed.

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Victims may incur tax liabilities, interest, and penalties while banks face reimbursement costs and reputational risk. The trend underscores the vulnerability of paper-based payments and fuels calls for broader adoption of electronic transaction methods.

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Comprehensive estimates of total losses from check-washing are unavailable, and reporting mechanisms vary across jurisdictions. The extent of unreported incidents remains unclear.

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• “This is not about lost birthday cards anymore,” — Frank Albergo, President, Postal Police Officers Association

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• “We've entered an era of organized postal crime.” — Frank Albergo, President, Postal Police Officers Association

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The Washington Post recommends using gel-ink pens, electronic payments, and avoiding mailbox flags that signal outgoing mail. Law-enforcement agencies plan continued monitoring of postal crime networks, while banks are reviewing fraud-reporting policies to reduce victim exposure.

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