Mar 9, 2026
With fraud on the rise across the country, an old form of theft has popped up in a Chicago suburb, and one resident is sounding the alarm.
As Therese Scarlati shared with CBS News (1), she and her husband recently became victims of a check-washing scam — a form of fraud where criminals use chemicals like benzene or bleach to erase the information on a check in order to replace it with a new payee and dollar amount, stealing money from the check owner’s bank account (2).
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In the case of the Scarlatis, two checks that they mailed on the same day — $165 for their insurance company and $64 for their water bill — turned into $5,200 for a snow plow rental and $5,700 for storage fees, respectively (3).
Here’s what you need to know about this form of fraud, including tips on how to protect yourself.
How victims are targeted
The Scarlatis reportedly found out through their mailman that a local post office had previous reports of similar issues. Therese also posted about the scam on Facebook, and dozens of other residents of Lombard, Illinois commented that they experienced the same problem.
On the hunt for answers, Scarlati went to the Lombard post office in question and asked to see the back room. "There was no cameras in the back area to watch how they are handling in the back," she told CBS News.
As of now, there’s no confirmation that the post office had anything to do with the scam that stole nearly $11,000 from the Scarlatis.
Thieves often get their hands on checks by stealing them from personal, business and certified USPS mailboxes (4). And while these criminals often steal checks to commit fraud, the personal information found on stolen checks can also be used to take out loans, as well as open bank accounts and lines of credit in the victim’s name.
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How common is check fraud?
Though checks are no longer the most popular payment method, the 2025 AFP Payments Fraud and Control Survey found that this method of payment is most often targeted for fraud (5).
Checks are still a common form of payment for business-to-business transactions, and the AFP survey found that 63% of respondents said their companies were victims of check fraud in 2024. In 2021, more than 350,000 Suspicious Activity Reports for potential check fraud were filed by financial institutions, a 23% increase from 2020, according to the Financial Crimes Enforcement Network (6).
The number of reports increased to more than 680,000 in 2022, which is nearly double the previous year’s amount. The FBI and the United States Postal Inspection Service duly announced in early 2025 that reports of check fraud were on the rise, warning the public to be cautious when using checks (7).
How to prevent check fraud
Since their money is federally insured, the Scarlatis are confident they can get it back, but not all victims of check-washing schemes are reimbursed.
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Check-washing rackets can be successful because some victims don’t regularly review their bank statements. Meanwhile, the Illinois Educators Credit Union (IECU) reports that many financial institutions don’t offer complete protection on fraud that is not reported right away, and only some offer partial protection within 60 days (8).
Therefore, the best way to protect yourself from check fraud is to monitor your bank account regularly and report any potential fraudulent activity immediately.
Another recommended way to avoid this kind of fraud is to give up on checks altogether. The IECU recommends using mobile and online banking services, as well as P2P systems, as these options are more secure than checks and easier to trace.
If you must put a check in the mail, bring it directly to a trusted post office as opposed to dropping it in a community mailbox. You should also use envelopes that have security tinting so that checks aren’t visible from the outside.
You can also prevent check washing by using pens that are harder to erase. Roller-ball, fountain and thick felt tip pens are safest — but blue ink, permanent markers and ballpoint pens should be avoided, according to IAG Forensics & Valuation (2).
If you happen to become a victim of this kind of fraud, don’t wait to report it to your bank, and if the check was meant to pay a bill, alert your intended recipient right away so that you don’t incur late fees. Fast action can potentially prevent you from losing hundreds or thousands of dollars.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
CBS News (1); IAG Forensics & Valuation (2); CBS News Chicago - YouTube (3); Fitzpatrick, Lentz & Bubba Law (4); Association for Financial Professionals (5); Financial Crimes Enforcement Network (6); FBI (7); Illinois Educators Credit Union (8).
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Rebecca Holland is dedicated to creating clear, accessible advice for readers navigating the complexities of money management, investing and financial planning. Her work has been featured in respected publications including the Financial Post, The Globe & Mail, and the Edmonton Journal.
