Check alterations, mail theft reported in Spartanburg. What to know about check washing

A Spartanburg man, who discovered one of his checks had been fraudulently altered after a break-in at the downtown Post Office, wants to warn others to be on the lookout.

On Wednesday, Sept. 21, Rick Beltram was checking his bank account online, when he discovered that a check to Verizon - dropped off at the Post Office Sunday, Sept. 18 - had been altered to $5,000 and made payable to "Hirazena D Anieiro."

Beltram called his bank, Arthur State Bank (ASB), and verified that it was an altered check. The bank manager advised Beltram to come to the bank and sign an affidavit to stop payment.

Then, on the morning of Wednesday, Oct. 5, Beltram discovered a second mailed check was altered to $3,000.

Beltram said he visited the Post Office at 250 S. Church St. to find out why the batch of five checks, including the altered one, had not been delivered. He said post office employees told him that between Sunday, Sept. 18 and Monday, Sept. 19, a USPS mailbox had been broken into.

S. Church St. postmaster Alan Smith told the Herald-Journal any comment and confirmation of a break-in would need to go through USPS public relations.

Jessica Adams, postal inspector and South Carolina public information officer for the United States Postal Inspection Service (USPIS), said that there is an active investigation by the agency into mail theft and fraud across the state, but declined to comment on specific instances or the size of the investigation.

Adams did say that postal inspectors based from Greenville were handling investigations of alterations in the area.

Related:USPS workers charged for $1.3m of credit card fraud, identity theft scheme in NY, NJ

What is check washing?

Beltram is a victim of "check washing," a type of financial fraud that involves the chemically washing of checks to alter the payee and dollar amount information, before fraudulently depositing them.

A host of cities including Philadelphia, Toledo, Baltimore, Boston and Chicago have all seen similar instances of check washing.

Eighty people were arrested in California recently and face grand theft, money laundering, and conspiracy charges for their part in a massive mail theft and fraud scheme that dates back to 2018. The members of the ring stole nearly $5 million from hundreds of victims across California.

Beltram said Arthur State Bank employees informed him about three other customers with similar issues.

Daniel Cook, CFO of Arthur State Bank, said he could not provide any information about check washing, total number of customers who had been victims of fraudulent attempts, or the number of altered checks ASB has seen at their 20 locations in South Carolina

"There is fraudulent activity going on and we are doing everything we can to help prevent it and encouraging our customers to always be on the watch and to really use their mobile and online banking," Cook said. "Our staff is trained to do their very best in recognizing fraudulent activity and stopping it before it happens when they can."

While ASB put Beltram on notice of the fraud and stopped payment of the altered check, he worries others, particularly residents who still pay predominantly by mail-in checks, could become victims.

"I was able to move on it quickly, but who knows how many are out there?" Beltram said.

Safety measures against check washing

Beltram said he regularly uses online banking and has been checking bank statements for his 96-year-old grandmother.

The incident report Beltram filed with the Spartanburg Police Department references the "check washing," which is evident from parts of the lines on the check missing.

The SPD report also states that there are no cameras in the area of the postal boxes outside the post office.

"My concern is there are no cameras or security, so they're very vulnerable," Beltram said.

Beltram said he replaced all the checks he mailed out, but did not stop payment on the checks in limbo until the bank reported them as altered.

"There's a lot of people that have sufficient balances that could have several hits before they knew something had gone wrong," Beltram said.

If you encounter what you believe to be a case of fraudulent check alterations, contact your bank or credit union to stop payment on the check before filing a report with USPIS. If you have mailed any checks and have reason to believe they have not reached the payee, contact the payee before stopping payment with your bank, if necessary.

The Herald-Journal will continue an investigation into the issue of check washing and will publish any updates.

This article originally appeared on Herald-Journal: Check alterations, mail theft reported in Spartanburg. What to know