Jan 26, 2025
When you file your taxes and owe the IRS money, you have a few options for paying your tax debt. You could send an electronic check or payment to the IRS directly from your bank. Or, you could go the old school route and put a check in the mail. But there are potential problems with mailing a check.
First, your check could get lost in the mail. And if that happens and the IRS doesn’t receive it by the tax-filing deadline, you could end up with interest and penalties on your tax debt.
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But there’s an even worse consequence that could ensue. A criminal could steal your check out of the mail, alter or duplicate it, and commit fraud against you by running away with that money.
In addition, if you’re talking about a large check — for example, $30,000 — you may be in for a world of stress in a situation like this, especially if your bank proves unhelpful.
Unfortunately, check fraud is not so uncommon. A 2024 survey by Abrigo found that 45% of Americans have fallen victim to financial fraud. And among them, 17% (or more than 20 million people) were specifically impacted by check fraud.
So it’s important to know how to protect yourself against a situation where you send a check and it ends up in the wrong hands.
What to do if you’ve been a victim
Check fraud can happen a few different ways. One common tactic criminals use is to wash a check, which means they steal it out of the mail, use chemicals to erase the original writing, and then rewrite that same check to a new payee to cash.
Some criminals may also be able to steal a check out of the mail and duplicate it. Here, things could get very dicey, because a criminal could then issue a host of additional checks against an account.
If you've been a victim of check fraud, it's important that you report it immediately to your bank and the police. And if your check was stolen out of the mail, you’ll want to inform the U.S. Postal Inspection Service.
You should know that banks must investigate fraud within 10 business days of a customer reporting it. If a conclusion isn't reached by this time, a bank may have to temporarily credit a customer's account while their investigation continues.
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The Consumer Financial Protection Bureau also says that generally, state law dictates that you’re not responsible for a check if someone forged the signature of the original payee. But it’s important to notify your bank right away if you learn that a check of yours has gotten into the wrong hands.
Of course, in a situation where your check was duplicated, things get a bit more complicated. It could be hard to prove that you didn’t issue a second check to another party that cashed it.
In that situation, you’ll need to work with your bank and law enforcement to resolve the matter. You may also need to get an attorney involved if your bank is not cooperative. You should also know that you don't have recourse if you sign a blank check and it gets into the wrong hands.
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How to avoid falling victim to check fraud
Because criminals are getting increasingly adept at stealing checks, it’s important to protect yourself from that situation. The USPS has some suggestions that could lower your chances of a check being stolen.
First, it says you should deposit all outgoing mail in blue collection boxes before the last pickup of the day. And if you’re writing a large check, you may want to bring it to your local post office directly.
Also, never leave your mail in your personal mailbox overnight. This applies to mail you’re sending out and mail you’ve received, in case someone decides to send you a check. And if you’re going away, arrange for your mail to be held so a criminal doesn’t get a chance to rifle through it while you’re gone.
Another way to protect yourself is to send payments electronically from your bank instead of putting a check in the mail. Even if your bank issues a check on your behalf, there will be a record in your account of the original amount, check number, and payee. So if your bank mails a check and a criminal is somehow able to alter it, you’ll have proof that the criminal wasn’t the original payee.
Finally, monitor your bank account frequently for activity. If you see a check cashed that you don’t recognize or don’t remember writing, it may be that a criminal managed to steal one of your original checks and duplicate it. That’s the sort of thing you’ll want to tell your bank about right away.
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Maurie Backman has been writing professionally for well over a decade. Since becoming a full-time writer, she's produced thousands of articles on topics ranging from Social Security to investing to real estate.
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